The Purchasing Power Parity

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Issue:

Business

 

Written by:

Robert F

 

Date added:

September 8, 2013

 

Level:

University

 

Grade:

B

 

No of pages / words:

11 / 3039

 

Was viewed:

2190 times

 

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Essay content:

The best-known and most-used purchasing power parity exchange rate is the Geary-Khamis dollar (the "international dollar"). PPP exchange rates (the "real exchange rate") fluctuations are mostly due to market exchange rates movements. Aside from this volatility, consistent deviations of the market and PPP exchange rates are observed, for example (market exchange rate) prices of non-traded goods and services are usually lower where incomes are lower...
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Aside from this volatility, consistent deviations of the market and PPP exchange rates are observed, for example (market exchange rate) prices of non-traded goods and services are usually lower where incomes are lower. (A U.S. dollar exchanged and spent in India will buy more haircuts than a dollar spent in the United States)...
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