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The empirical tests of purchasing power parity have not proved PPP to be accurate in predicting future exchange rates and also the PPP does hold

The empirical tests of purchasing power parity have not proved PPP to be accurate in predicting future exchange rates and also the PPP does hold up reasonably well in two situations. What are some reasons why PPP does not accurately predict future exchange rates, and under what conditions might we reasonably expect PPP to hold?

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