Proposition 1: Under purchasing power parity
, a flexible exchange rate system always performs better.
Hung, Mao-Wei, Yin Ching, Jan (2002) Use of Deviation of Purchasing Power Parity
and Interest Rate Parity to Clarify the 1997 Asian Financial Crisis.
As our data demonstrate, real exchange rates can show large and persistent deviations from levels consistent with purchasing power parity
1997: Purchasing power parity
in the presence of foreign exchange black market: The case of India.
Measured by purchasing power parity
, the OECD predicts that China's GDP would overtake that of the United States by 2030.
Gross Domestic Product (GDP) Per Capita at Purchasing Power Parity
: GDP in US$ per capita at current prices and purchasing power parity
Purchasing power parity
constitutes one of the fundamental building block in modeling the modern theories of exchange rate determination.
However, its purchasing power parity
per capita of nearly US$10,000, makes it by far the most affluent in the region.
The study compared the price of goods and services as well as GDP and Purchasing Power Parity
Shiokawa hinted at a House of Councillors Budget Committee session that he favors a weaker yen, saying the dollar-yen exchange rate should reflect the purchasing power parity
of Japan and the United States.
There are feedback mechanisms limiting this influence, however, which can be set out by analysing the implications of the uncovered interest parity condition for any departure of the exchange rate from its purchasing power parity
value as a result of a temporary policy-induced change in the domestic interest rate.
They are interest rates, asset prices and purchasing power parity
, the relative cost of everything from Big Macs to new clothes.