Data Project #1: PPP – Please read the file attached
Data Project #1: PPP
PURPOSE:To examine evidence on the long-run Purchasing Power Parity theory of exchange rates.
CHOICE OF COUNTRIES: A separate file contains a list of countries for which I was able to find data on FRED. I stopped my search, however, so it is likely that there are even more countries on FRED. Also, you may use other data sources, most of all the IMF’s International Financial Statistics or the World Bank’s online database, to get data on countries that I have not listed.
Choose two countries, one an advanced economy and one an emerging market economy. Do your analysis for the US and your advanced economy, and then do the whole process again for the US and your emerging market economy.