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Relative form of purchasing power parity |
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Relative form of purchasing power parityTheory that the rate of change in the prices of products should be somewhat similar, but not absolutely the same when measured in a common currency, as long as transportation costs and trade barriers are unchanged.Relative form of purchasing power parity Similar MatchesPurchasing powerPurchasing powerThe amount of goods and services which can be purchased by a given unit of currency after taking into account the effect of inflation. Purchasing power can be assessed by tracking an index of consumer prices and comparing different periods, for example the early 1990s and the current time. Inflation will result in reduced purchasing power over a period of time. Purchasing powerPurchasing powerThe amount of credit available for credit trading in a credit, after taking credit into consideration. Purchasing power parity theoryPurchasing power parity theoryA theory of the exchange rate that the rate will adjust to achieve purchasing power parity, in either its absolute or its relative form. Purchasing powerPurchasing powerThe amount of goods that money will buy, usually measured (inversely) by the CPI. Purchasing power of the dollarPurchasing power of the dollarThe amount of goods and services that can be exchanged for a dollar as compared with amount of a previous time period. Further SuggestionsPurchasing power riskPurchasing power parity Purchasing power parity Absolute form of purchasing power parity Purchasing power parity exchange rate |
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