Journal Information  ·  Mission  ·  Editorial Board  ·  Directory of Economists Submissions  ·  New Submission  ·  Submit a Revision Table of Contents  ·  Refereed Content            Notes            Comments            Preliminary Results  ·  Research       Announcements  ·  Letters to the Editor  ·  Conference       Announcements  ·  Search Email Notification Service and Directory of Research Economists  ·  Add me to Directory  ·  Modify my Profile General  ·  Submission Guidelines  ·  PDF Conversion  ·  Copyright  ·  Electronic Publishing  ·  Archiving  ·  Sponsors and       Endorsements  ·  Economic Links     Nilgün Çil Yavuz "IS REAL EXCHANGE RATE STATIONARY FOR TURKEY? EVIDENCE FROM THE TWO-BREAK LM UNIT ROOT TEST" (2008, Vol. 28, No. 15.)     This paper aims to analyze the stochastic behavior of Turkey’s real exchange rate for the period 1990-2006. For this purpose, the minimum LM unit root test with two structural breaks is applied to real exchange rate data, which consists of monthly series of CPI-based real exchange rate index. The test results indicate that real exchange rate is stationary, supporting the validity of the purchasing power parity (PPP) hypothesis in the long run. This result also suggests that shocks do not have any permanent effect on the real exchange rate in Turkey.     This abstract has been downloaded 874 times.