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PURCHASING-POWER PARITY [1 record]

Record 1 2009-11-23

English

Subject field(s)
  • Currency and Foreign Exchange
  • Economic Doctrines, Systems and Policies
DEF

An explanation of exchange rate changes based on keeping prices of goods in different countries fairly similar by offsetting inflation differentials with changes in the currency exchange rates.

CONT

PPP: Standardized indices of Gross Domestic Product per capita using purchasing power parities instead of exchange rates as conversion factors.

CONT

The covered interest parity relationship allows the forward premium to be used as the measure of the interest differential. The relative prices are GNE deflators (theoretically the most appropriate series for a broad measure of purchasing-power parity [PPP]) which are revised only when new figures are released.

French

Domaine(s)
  • Politique monétaire et marché des changes
  • Doctrines, systèmes et politiques économiques
CONT

La parité de pouvoir d'achat (PPA) est un taux de conversion monétaire qui permet d'exprimer dans une unité commune les pouvoirs d'achat des différentes monnaies. Ce taux exprime le rapport entre la quantité d'unités monétaires nécessaire dans des pays différents pour se procurer le même panier de biens et de services. Ce taux de conversion peut être différent du taux de change; en effet, le taux de change d'une monnaie par rapport à une autre reflète leurs valeurs réciproques sur les marchés financiers internationaux et non leurs valeurs intrinsèques pour un consommateur.

Spanish

Campo(s) temático(s)
  • Política monetaria y mercado de cambios
  • Doctrinas, políticas y sistemas económicos
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