Absolute purchasing power parity: Difference between revisions
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* [[Exchange rate]] | * [[Exchange rate]] | ||
* [[Purchasing power parity]] | * [[Purchasing power parity]] | ||
[[Category:FX_Risk]] | |||
Revision as of 17:52, 19 August 2014
A form of purchasing power parity theory which states that under a fully floating exchange rate regime the ratio between domestic and foreign price levels should be equal to the equilibrium foreign exchange rate between the domestic and foreign currencies.
