Crato, NunoRothman, Philip2023-05-032023-05-031994Crato, Nuno and Philip Rothman .(1994). “A reappraisal of parity reversion for UK real exchange rates”. Applied Economics Letters, Vol. 1, No. 9. pp. 139 –141. (Search PDF in 2023).1350–5851http://hdl.handle.net/10400.5/27698We apply a new approach to test the long-run purchasing power parity theory of real exchange rate movements for the UK. The question of whether real exchange rates have a unit root or are mean reverting is set in the more general framework of fractionally differenced time-series models. Our results suggest that in the current period of floating rates, UK real exchange rates return to parity in the long run.engTime SeriesExchange RatesEconometrics MethodsARIMA ModelsUnited Kingdomjournal article