Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

What is Purchasing Power Parity? How to measure its effects on economy?

user-image
Question added by MUSTAFIZUR RAHMAN , Senior Merchandiser , Ultimate Fashions Limited.
Date Posted: 2016/03/09
Amjed Mehboob
by Amjed Mehboob , G.M -(Currently Job Seeking ) , Advance Education centre

Its  is 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.

It can measure in two wasy 

  • Absolute PPP - in which all good and service are included regardless of trade able or non trade able goods
  • Relative PPP in which relative price are used  like Pna/Poa /Pnb/Pob

More Questions Like This

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.