Absolute purchasing power parity: Difference between revisions
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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. | 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. | ||
== See also == | == See also == | ||
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* [[Purchasing power parity]] | * [[Purchasing power parity]] | ||
[[Category: | [[Category:Manage_risks]] | ||
Latest revision as of 08:46, 22 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.
