Definitions for purchasing power parity
pur·chas·ing pow·er par·i·ty

WiktionaryRate this definition:0.0 / 0 votes

1. purchasing power paritynoun

   A theory of long-term equilibrium exchange rates based on relative price levels of two countries.

WikipediaRate this definition:0.0 / 0 votes

1. Purchasing power parity

   Purchasing power parity (PPP) is a measurement of the price of specific goods in different countries and is used to compare the absolute purchasing power of the countries' currencies. PPP is effectively the ratio of the price of a basket of goods at one location divided by the price of the basket of goods at a different location. The PPP inflation and exchange rate may differ from the market exchange rate because of tariffs, and other transaction costs.The purchasing power parity indicator can be used to compare economies regarding their gross domestic product (GDP), labour productivity and actual individual consumption, and in some cases to analyse price convergence and to compare the cost of living between places. The calculation of the PPP, according to the OECD, is made through a basket of goods that contains a "final product list [that] covers around 3,000 consumer goods and services, 30 occupations in government, 200 types of equipment goods and about 15 construction projects".

WikidataRate this definition:0.0 / 0 votes

1. Purchasing power parity

   Purchasing power parity is an economic theory and a technique used to determine the relative value of currencies, estimating 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 asks how much money would be needed to purchase the same goods and services in two countries, and uses that to calculate an implicit foreign exchange rate. Using that PPP rate, an amount of money thus has the same purchasing power in different countries. Among other uses, PPP rates facilitate international comparisons of income, as market exchange rates are often volatile, are affected by political and financial factors that do not lead to immediate changes in income and tend to systematically understate the standard of living in poor countries, due to the Balassa–Samuelson effect. The idea originated with the School of Salamanca in the 16th century and was developed in its modern form by Gustav Cassel in 1918. The concept is based on the law of one price, where in the absence of transaction costs and official trade barriers, identical goods will have the same price in different markets when the prices are expressed in the same currency.

How to pronounce purchasing power parity?

1. Alex

   US English

   David

   US English

   Mark

   US English

   Daniel

   British

   Libby

   British

   Mia

   British

   Karen

   Australian

   Hayley

   Australian

   Natasha

   Australian

   Veena

   Indian

   Priya

   Indian

   Neerja

   Indian

   Zira

   US English

   Oliver

   British

   Wendy

   British

   Fred

   US English

   Tessa

   South African

How to say purchasing power parity in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of purchasing power parity in Chaldean Numerology is: 1

2. Pythagorean Numerology

   The numerical value of purchasing power parity in Pythagorean Numerology is: 3

References

1. ^ Wiktionary
   https://en.wiktionary.org/wiki/Purchasing_Power_Parity
2. ^ Wikipedia
   https://en.wikipedia.org/wiki/Purchasing_Power_Parity
3. ^ Wikidata
   https://www.wikidata.org/w/index.php?search=purchasing power parity