The purpose of the study is to empirically determine the relevance of PPP theory under the traditional arbitrage and the efficient markets (EPPP) frameworks during the recent floating period of the 1980s. Monthly data was collected for fifteen industrial nations from January 1980 to December 1986. The models tested included the short-run PPP, the long-run PPP, the EPPP, the EPPP with deviations from expectations, the forward rates as unbiased estimators of future spot rates, the EPPP and the forward rates, and the EPPP with forward rates and lagged values. A generalized regression method called Seemingly Unrelated Regression (SUR) was employed to test the models. The results support the efficient markets approach to PPP but fail to support the traditional PPP in both the short term and the long term. Moreover, the forward rates are poor and biased predictors of the future spot rates. The random walk hypothesis is generally supported.

Scholars assert that the Cold War began at one of several different points. Material recently available at the National Archives yields a view different from those already presented. From these records, and material from the Foreign Relations Series, Parliamentary Debates, and United States Government documents, a new picture emerges. This study focuses on the British occupation of Germany and on the Council of Foreign Ministers' Moscow Conference of 1947. The failure of this conference preceded the adoption of the Marshall Plan and a stronger Western policy toward the Soviet Union. Thus, the Moscow Conference emphasized the disintegrating relations between East and West which resulted in the Cold War.