The latest empirical studies related to Purchasing Power Parity (PPP) are reviewed in this article. A common feature of most of them is the non-rejection of the PPP hypothesis, at least in the long-run. The use of new econometric techniques, such as cointegration methodology, allowing for specifications including both the short-run dynamics and the long-run relationships among the variables are, in part, responsible for the improvement in the empirical results. However, these results are sensitive to the specific countries, currency and price indexes used in the analysis.

Keywords: purchasing power parity, uncovered interest parity, cointegration.