Difference between revisions of "Purchasing power parity"

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(Created page with "Purchasing power parity is a concept that implies that the level of exchange rates adjusts so that identical goods cost the same in different countries. Sometimes referred...")
 
(Definitions)
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According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]],
 
According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]],
 
:[[Purchasing power parity]]. Implies that the level of exchange rates adjusts so that identical goods cost the same in different countries. Sometimes referred to as the “law of one price.”
 
:[[Purchasing power parity]]. Implies that the level of exchange rates adjusts so that identical goods cost the same in different countries. Sometimes referred to as the “law of one price.”
 +
According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]],
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:[[Purchasing power parity]] ([[PPP]]). The relationship in which the same products cost roughly the same amount in different countries after taking into account the exchange rate.
  
 
==Related concepts==
 
==Related concepts==

Revision as of 01:41, 2 November 2019

Purchasing power parity is a concept that implies that the level of exchange rates adjusts so that identical goods cost the same in different countries. Sometimes referred to as the “law of one price.”


Definitions

According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),

Purchasing power parity. Implies that the level of exchange rates adjusts so that identical goods cost the same in different countries. Sometimes referred to as the “law of one price.”

According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),

Purchasing power parity (PPP). The relationship in which the same products cost roughly the same amount in different countries after taking into account the exchange rate.

Related concepts

Related lectures