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The economist state the empirical tests of purchasing power parity have, for the most part, not...

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

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