Purchasing Power Parity

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Posted: Feb 24, 2015
By: Gordon Gekko
Comments: Comments Off on Purchasing Power Parity

Model of exchange rate determination stating that the price of a good in one country should equal the price of the same good in another country after adjusting for the changes in the price due to the change in exchange rate. Also known as the law of one price.

Glossary: Under-Valuation

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Purchasing Power Parity

Purchasing Power Parity

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