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Svetllana [295]
3 years ago
13

Explain the theory of purchasing power parity (ppp). based on this theory, what is a general forecast of the values of curren­ci

es in countries with high inflation?
Business
1 answer:
Nadusha1986 [10]3 years ago
7 0

Purchasing Power Parity or PPP deals with the fact that the purchasing power of a consumer should be similar either buying goods in a foreign country or in the home country. The exchange rate will adjust to maintain equal purchasing power if inflation in a foreign country differs from inflation in the home country.

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