The following article is a review of purchasing power parity. It was published in 2004 by the Journal of Economic Perspectives by the American Economic Association.

• The purchasing power parity debate by Alan M. Taylor and Mark P. Taylor.

Your task is to read through the paper and consider the contribution the paper makes to our understanding of purchasing power parity in the long run and the short run. You should comment on both the strengths and the weaknesses of the paper.