Purchasing power parity and Reserve Bank intervention in the foreign exchange market

Master Thesis

2004

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University of Cape Town

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Abstract
This paper tests the behaviour of the PPP relationship in South Africa between 1993 and 2003 using cointegration techniques. The period under review is divided into two sub-phases. The first, from January 1993 to May 1998, encompasses the changing political situation and the initial effects of global integration for South Africa. It is found that the PPP relationship holds during this time frame.
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Includes bibliographical references.

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