| Purchasing
Power Parity - PPP |
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The
theory that over the long term, the exchange rate between two currencies
adjusts to relative price levels, that is, relative purchasing power.
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In
other words, an identical good in different coutries should cost the
same after adjusting for currency. |
PPP
and the Big Mac - Interesting article examining PPP by comparing
prices of a Big Macs around the world. (Adobe PDF file). |
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Dictionary
