Woods test
1.With 23 OECD exchange rate data from the post-Bretton Woods period,a unit root in most of real exchange rates by using ADF and PP unit root tests is found. The main reason is that ADF and PP tests lack of test power. Using LL and IPS panel unit root test,mean reverting behavior is observed in the real exchange rate series in all the countries and long run purchasing power parity holds in the long run.
