What is it about?
This is the first published research article on testing purchasing power parity in cryptocurrencies. The primary purpose of this article is to conduct the Fourier Nonlinear Unit Root Test to check Purchasing Power Parity (PPP) for seven cryptocurrencies traded in seventeen countries from 2010 to 2021. The unit root test supports the PPP hypothesis when we use each cryptocurrency separately for all the countries. However, the PPP hypothesis is strongly supported when we pool them together by countries and cryptocurrencies. This fiding is in line with the power of the test issue of the PPP for regular PPP testing, which also holds good in cryptocurrencies.
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Why is it important?
This is the first published research article on testing purchasing power parity in cryptocurrencies.
Perspectives
People are mostly testing PPP for regular currencies. We thought why we cannot do it for cryptocurrencies which serves almost same purpose like regular legal tenders.
Dr Gour Gobinda Goswami
North South University
Read the Original
This page is a summary of: Fourier Nonlinear Quantile Unit Root Test of Purchasing Power Parity in cryptocurrencies, Applied Economics Letters, October 2022, Taylor & Francis,
DOI: 10.1080/13504851.2022.2132205.
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