Purchasing power parity
In economics, purchasing power parity (PPP) is a method used to calculate an alternative exchange rate between the currencies of two countries. The PPP measures how much a currency can buy in terms of an international measure (usually dollars), since goods and services have different prices in some countries than in others.
External links
- Big Mac Index (The Economist)
- Countries (The Economist)
- Explanations from the U. of British Columbia
- PPP US dollar exchange rates (IMF)
- The most widely used PPP exchange rate come from the Penn World Tables at the Center for International Comparison in Pennsylvania, USA.
~ Table of Content ~
| ► | Introduction |
| ► | Explanation |
| ► | Method |
| ► | Application |
| ► | Examples |
| ► | PPP: clarification and discussion |
| ► | See also |
| ► | External links |
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