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The work reviews the empirical literature on Purchasing Power Parity (PPP) in the period of floating exchange rates, 1973-1990, with special attention to the studies addressing the issue of the long run validity of the hypothesis. The different versions of PPP are described and several theoretical reasons put forward to explain deviations from it are outlined. Some empirical problems common in different studies are also analysed. The results of a number of recent empirical studies are then surveyed in terms of both methodology and findings. JEL: E21, E40, F31

Between 1960 and 1985 the international integration of the Italian economic system increased substantially, with the pattern of trade changing significantly over the last decade. The literature that analysed these trends in relation to the process of structural change in the productive system has given rise to a debate on the macroeconomic implications of the changes taking place. This paper presents a macroeconomic framework for the consequences of these structural changes. The authors first focus on the links between imports and final demand. Then, these structural features of the system are embodied in a macroeconomic model. Finally, this model is used as a conceptual framework to analyse some macro-economic implications of the structural changes discussed in the literature. JEL: F15, N24