Purchasing Power Parity
Purchasing Power Parity
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Summary of Purchasing Power Parity
An equal relationship of prices between two countries. Price levels in both countries are substantially the same, considering the rate of exchange.
(Main Author: William J. Miller)
Purchasing Power Parity (PPP) in International Trade
Meaning of Purchasing Power Parity (PPP), according to the Dictionary of International Trade (Global Negotiator): An economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power. The PPP is calculated as: S = P1 / P2, where "S" represents exchange rate of currency 1 to currency 2; P1 represents the cost of good X in currency; and P2 represents the cost of good X in currency 2.
Hierarchical Display of Purchasing power parity
Economics > National accounts > Income > Purchasing power
Purchasing power parity
Concept of Purchasing power parity
See the dictionary definition of Purchasing power parity.
Characteristics of Purchasing power parity
Resources
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Translation of Purchasing power parity
Spanish: Paridad de poder adquisitivo
French: Parité de pouvoir d'achat
German: Kaufkraftparität
Italian: Parità di potere d'acquisto
Portuguese: Paridade do poder de compra
Polish: Parytet siły nabywczej
Thesaurus of Purchasing power parity
Economics > National accounts > Income > Purchasing power > Purchasing power parity
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