Purchasing power parity
ECONOMIC THEORY THAT STATES THAT THE EXCHANGE RATE BETWEEN TWO COUNTRIES IS EQUAL TO THE RATIO OF THE CURRENCIES' RESPECTIVE PURCHASING POWER
Purchasing Power Parity; Purchasing price parity; Discussion and clarification of PPP; Purchasing-power parity; Purchasing parity power; Purchasing power parity (PPP); Absolute Purchasing power parity; GDP at purchasing power parity; PPP$; GDP adjusted to cost of living; Purchasing power adjustment; Cost of living parity; GDP PPP; Purchasing Power Standard
Purchasing power parity (PPP) is the measurement of prices in different countries that uses the prices of specific goods to compare the absolute purchasing power of the countries' currencies, and, to some extent, their people's living standards. In many cases, PPP produces an inflation rate equal to the price of the basket of goods at one location divided by the price of the basket of goods at a different location.