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Purchasing power parity

• The notion that the ratio between domestic and foreign price levels should equal the equilibrium exchange rate between domestic and foreign currencies.

 
 Embedded terms in definition
 Exchange rate
Exchange
Foreign
 
 Related Terms
 Buying power
Conversion parity price
Debt service parity approach
Earning power
Interest rate parity theorem
Parity
Parity value
Power cap
Power grid
Power of attorney
Purchasing power risk
Put call parity relationship
Relative purchasing power parity
Spot futures parity theorem

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