Relative Purchase Power Parity

Relative Purchase Power Parity
An expansion of the purchase power parity theory, which suggests that prices in countries vary for the same product but that they differ by the same proportional rate over time. The reasons suggested for this price difference include taxes, shipping costs and differences in product quality.

The relative purchase power parity condition suggests that countries with higher rates of inflation will have a devalued currency.


Investment dictionary. . 2012.

Игры ⚽ Нужно сделать НИР?

Look at other dictionaries:

  • Purchasing power parity — GDP per capita adjusted for Purchasing Power Parity (PPP) in the world, 2009 …   Wikipedia

  • Doctrine of parity — The doctrine of parity was used to justify agricultural price controls in the United States beginning in the 1920s. It was the belief that farming should be as profitable as it was between 1909 and 1914, an era of high food prices and farm… …   Wikipedia

  • Regional power — In international relations, a regional power is a state that has power within a geographic region. [http://66.102.9.104/search?q=cache:1oWDzyQHN9kJ:www.essex.ac.uk/ECPR/events/jointsessions/helsinki/long ws outlines/ws9.doc+%22regional+power%22… …   Wikipedia

  • Gross domestic product — GDP redirects here. For other uses, see GDP (disambiguation). Not to be confused with Gross national product or Gross domestic income. CIA World Factbook 2005 figures of total nominal GDP (top) compared to PPP adjusted GDP (bottom) …   Wikipedia

  • Foreign exchange market — Forex redirects here. For the football club, see FC Forex Braşov. Foreign exchange Exchange rates Currency band Exchange rate Exchange rate regime Exchange rate flexibility Dollarization Fixed exchange rate Floating exchange rate Linked exchange… …   Wikipedia

  • United States — a republic in the N Western Hemisphere comprising 48 conterminous states, the District of Columbia, and Alaska in North America, and Hawaii in the N Pacific. 267,954,767; conterminous United States, 3,022,387 sq. mi. (7,827,982 sq. km); with… …   Universalium

  • china — /chuy neuh/, n. 1. a translucent ceramic material, biscuit fired at a high temperature, its glaze fired at a low temperature. 2. any porcelain ware. 3. plates, cups, saucers, etc., collectively. 4. figurines made of porcelain or ceramic material …   Universalium

  • China — /chuy neuh/, n. 1. People s Republic of, a country in E Asia. 1,221,591,778; 3,691,502 sq. mi. (9,560,990 sq. km). Cap.: Beijing. 2. Republic of. Also called Nationalist China. a republic consisting mainly of the island of Taiwan off the SE coast …   Universalium

  • France — /frans, frahns/; Fr. /frddahonns/, n. 1. Anatole /ann nann tawl /, (Jacques Anatole Thibault), 1844 1924, French novelist and essayist: Nobel prize 1921. 2. a republic in W Europe. 58,470,421; 212,736 sq. mi. (550,985 sq. km). Cap.: Paris. 3.… …   Universalium

  • international relations — a branch of political science dealing with the relations between nations. [1970 75] * * * Study of the relations of states with each other and with international organizations and certain subnational entities (e.g., bureaucracies and political… …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”