International Evidence on Purchasing Power Parity: A Study of High and Low Inflation Countries

Mehdi Monadjemi, John Lodewijks — Sat, 31 Jul 2021 00:00:00 +0800

The purpose of this article is to select a sample of low inflation countries and high inflation countries and examine the long run validity of the relative Purchasing Power Parity doctrine. We explore the notion that countries with historically low inflation experience strong and stable currency and those with a continuous high inflation face weak and depreciating currencies. After a review of the literature, a theoretical model is developed for the relationship between inflation and exchange rate changes. This is followed by some graphical annual time series and empirical results for selected countries. We find our hypothesis is supported for high inflation countries. We then explore productivity differences and their impact on real exchange rates.

The Development of Sino Indian Trade from the Perspective of “The Belt and Road Initiative”

Che Zilong — Mon, 06 Sep 2021 00:00:00 +0800

Since ancient times, the two ancient civilizations of China and India have had a long history of trade exchanges, and such trade exchanges have left an important mark in the history of Sino-India relations. Chronologically，this article takes the Sino-Indian trade exchanges as a research perspective to outline two thousand years of trade history between two countries. From the Sino-Indian Business Road that began in the Qin Dynasty and Han Dynasty to the origin of the Silk Road on which Zhang Qian went to the Western Regions as an envoy, explored the Sino-India-Tibet Road and Maritime Silk Road trade; analyzed the opium trade between China, Britain and India in modern times. At the same time, it uses the founding of People’s Republic of China, the Sino-Indian War, the Belt and Road Initiative and the important events of the global epidemic as nodes to describe the development of Sino-Indian trade. In the long history, this kind of rich trade history also shows that China and India are more likely and should establish a better and more extensive trade cooperation relationship, and learn to effectively deal with the turmoil. This will provide reference for operating the trade activities between the two countries.

Journal of Economics and Management Sciences

International Evidence on Purchasing Power Parity: A Study of High and Low Inflation Countries

The Development of Sino Indian Trade from the Perspective of “The Belt and Road Initiative”