Difference between revisions of "Purchasing-power parity"
(Created page with "Purchasing-power parity is the doctrine according to which goods must sell for the same price in every country, implying that the nominal exchange rate reflects differenc...") |
(No difference)
|
Latest revision as of 18:32, 2 July 2020
Purchasing-power parity is the doctrine according to which goods must sell for the same price in every country, implying that the nominal exchange rate reflects differences in price levels.
Definition
According to Macroeconomics by Mankiw (7th edition),
- Purchasing-power parity. The doctrine according to which goods must sell for the same price in every country, implying that the nominal exchange rate reflects differences in price levels.
