Purchasing power parity is widely accepted as a better explainer of short-run changes in exchange rates than interest rate effects.

Name: Purchasing power parity is widely accepted as a better explainer of short-run changes in exchange rates than interest rate effects.
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Purchasing power parity (PPP) is generally considered more relevant for explaining long-term exchange rate movements, while interest rate effects are often seen as more influential in the short run.

Purchasing Power Parity Is Widely Accepted as a Better Explainer