I found your article on exchange rates very helpful. Please could you explain what is Purchasing Power Parity (PPP) and how does
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Inflation, Balance of Payments and Currency Exchange Rates
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1 Retail exchange market; 2 Quotations; 3 Exchange rate regime; 4 Fluctuations in exchange rates; 5 Purchasing power of currency; 6 Bilateral vs. effective exchange rate
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Another example of one measure of the law of one price, which underlies purchasing power parity, is the Big Mac Index, popularized by The Economist, which compares
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