=+18. Why might it be true that relative PPP holds better in the long run than the

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=+18. Why might it be true that relative PPP holds better in the long run than the short run?

(Think about how international trading firms might react to large and persistent crossborder differences in the prices of a tradable good.)

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International Economics

ISBN: 9780132146654

9th Edition

Authors: Paul R. Krugman, Maurice Obstfeld, Marc Melitz

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