Absolute form of purchasing power parity
Absolute form of purchasing power parity is a theory that explains how inflation differentials affect exchange rates. It suggests that prices of two products of different countries should be equal when measured by a common currency.
Absolute form of purchasing power parity is a theory that prices of products of two different countries should be equal when measured by a common currency. Also called the "law of one price."
Category: Banking & Finance
More from this Section
- Euro-Commercial paper (ECP)
Euro-Commercial paper (ECP), like commercial paper issued in domestic markets around the ... - The accounts of the BOP
The BOP is composed of two primary subaccounts, the Current Account and the Capital/ Financial ... - Monetary Targeting
Monetary Targeting is a policy which attempts to directly limit the growth in the total ... - Term Loan
Term Loan is a loan intended for medium-term or long-term financing to supply cash to ... - Ordinary life insurance
Ordinary life insurance is a type of whole life insurance providing protection throughout ...