Ardıç, Oya Pınar2016-01-082016-01-081998http://hdl.handle.net/11693/18049Ankara : Institutes of Economics and Social Sciences of Bilkent University, 1998.Thesis (Master's) -- Bilkent University, 1998.Includes bibliographical references leaves 71-73This thesis analysed prices and exchange rates of eleven EMU States using time series analysis. Among the criteria set by the Maastricht Treaty as requirements of participating in the euro zone, price stability and exchange rate convergence were examined. The answers for the questions such as whether or not the prices and exchange rates move together permanently, and the PPP hypothesis holds for euro against US dollar, Japanese yen and Turkish lira were investigated. For these purposes, real exchange rate indices for the euro zone were calculated using the data on prices and nominal exchange rates. The prices, bilateral nominal and real exchange rates of the EMU States were found to have a long-run equilibrium relationship among themselves. However, there was no evidence of PPP for euro against US dollar, Japanese yen and Turkish lira.viii, 88 leaves, graphicsEnglishinfo:eu-repo/semantics/openAccessEMUpricesreal exchange ratenominal exchange rateunit rootcointegrationPPP hypothesisHG136 .A73 1998Monetary unions--European Union countries.Monetary policy--European Union countries.Finance.Money.Thesis