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Purchasing power parity (PPP) is the rate of currency conversion that equalizes the purchasing power of different currencies, by eliminating the differences in price levels between countries.

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1 answer
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How are PPP, nominal exchange rates and inflation related?

This Forbes article discusses how changes in the market exchange rate can be used to estimate an inflation rate thanks to the principle of purchasing power parity (PPP). Can someone distill this proc …
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1 vote
1 answer
43 views

Would PPP adjustments between countries be irrelevant if all countries had the same relative...

I'm trying to understand the relationship, if any, between the fact that countries have different relative prices (e.g. different 'food price-to-general consumer prices' ratios) impacts the need for p …
StatsScared's user avatar
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1 answer
151 views

What does it mean if country X has a higher GDP at Purchasing Power Parity (PPP) than countr...

I understand the implications of having a higher/lower GDP at market exchange rates. I also understand what PPP measures. But, what does a difference in GDP, at PPP, indicate in terms of differences …
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