📊 Purchasing Power Parity Reassessed in Asia
The latest study by Assoc. Prof. Türker Batmaz, published in the Applied Economics Letters journal (indexed in Scopus Q2 category), examines real exchange rate shocks across thirty Asian economies using monthly data from 1993–2024 through a new-generation quantile panel approach.
🔍 The study reveals that exchange rate shocks are persistent at lower levels but temporary at higher levels. This finding indicates that PPP holds only under certain conditions, suggesting the need to reassess traditional approaches.
💡 The research further shows that the long-term impact of monetary policies on exchange rates is limited, while short-term fluctuations are shaped primarily by market interventions.
📚 By highlighting the strength of quantile-based methods in exchange rate analysis, this innovative approach makes a significant contribution to the economics literature.
