Purchasing power parity

From ACT Wiki
Revision as of 16:27, 25 June 2022 by imported>Doug Williamson (Add abbreviation.)
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to navigationJump to search

(PPP).

Purchasing power parity theory predicts that differences in periodic inflation rates will be offset and exactly matched by the change in the spot foreign exchange rate between the two related currencies over time.


See also