Purchasing power parity: Difference between revisions
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imported>Doug Williamson (Add links.) |
imported>Doug Williamson (Remove surplus link.) |
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* [[Interest rate parity]] | * [[Interest rate parity]] | ||
* [[International Fisher Effect]] | * [[International Fisher Effect]] | ||
[[Category:The_business_context]] | [[Category:The_business_context]] | ||
[[Category:Identify_and_assess_risks]] | [[Category:Identify_and_assess_risks]] | ||
[[Category:Manage_risks]] | [[Category:Manage_risks]] |
Revision as of 21:42, 10 October 2020
Purchasing power parity theory predicts that differences in periodic inflation rates will be offset and exactly matched by the change in the spot foreign exchange rate between the two related currencies over time.