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.

Duke Humphrey of Gloucester is often given credit for the renaissance of English learning in the fifteenth century. It is true that the donations of books he made to Oxford, his patronage of English and Italian writers, and his patronage of administrators who had humanist training resulted in the transmittal of humanist values to England. But is it also true that these accomplishments were mainly the by-product of his self-aggrandizing style, rather than a conscious effort on the duke's part to promote learning. The duke, however, does deserve recognition for what he unwittingly may have done.