Purchasing Power Parity and Interest Rate Parity

External question — Economics Stack Exchange Author: Tunay Sabri Yüksel Original post: https://economics.stackexchange.com/questions/59603 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. We know that both Purchasing Power Parity and Interest Rate Parity conditions do not hold in the short run. However, there are several works provided that they can hold in the long run. I am curious whether is it possible to observe that while one of them holds the other one does not hold. I know they are two separate things; while in the deviations from IRP one can have arbitrage possibilities, for the PPP it is hard to say the same thing. But they point out the same thing, which is the exchange rate.