Studies of PPP covering many years will be more likely to yield evidence of PPP than studies based on short-run data.

Name: Studies of PPP covering many years will be more likely to yield evidence of PPP than studies based on short-run data.
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The longer time frame will allow for more inflation so that the random relative price effects are relatively unimportant and we find exchange rate changes closely related to inflation differentials.

Studies of PPP Covering Many Years Will Be More Likely