DEFINITION
Absolute Purchasing Power Parity

"Absolute purchasing power parity": A form of purchasing power parity theory which states that under a fully floating exchange rate regime the ratio between domestic and foreign price levels should be equal to the equilibrium foreign exchange rate between the domestic and foreign currencies.
Loading conversations.
Similar or Related Terms
Statistics
249
Characters
44
Words
9.9
Flesch Reading Ease
22.8
Flesch Kincaid Grade