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Purchasing Power Parity and Exchange Rates
The Economist defines purchasing-power parity theory as follows: Purchasing-power parity theory. A theory which states that the exchange rate between one currency and another is in equilibrium when their domestic purchasing powers at that rate of exchange are equivalent.
What Determines an Exchange Rate
A discussion for beginners that examines what determines an exchange rate or the value of a currency. Why do currencies go up and down?
What is the difference between relative PPP and absolute PPP?
Relative PPP vs. Absolute PPP. Definitions and descriptions.
Purchasing Power Parity: Link Between Exchange Rates and Inflation
A reader's response to the article "The Trade Deficit and Exchange Rates"
A Beginner's Guide to Purchasing Power Parity Theory (PPP Theory)
A look at the purchasing power parity theory (PPP theory) and show what the theory implies. An important topic in monetary economics.