The other uses the purchasing power parity (PPP) exchange rate—the rate at which the ... rate to convert these flows into dollars when aggregating across regions or calculating the global current ...

If you wanted to calculate the exchange rate that would be implied by the purchasing power parity theory, you would simply compare the cost of a basket of identical goods between two currencies.

A method to allow for comparison of household purchasing power across countries, adjusting for price differences. PPPs compare the purchasing power of monetary units in different countries. A PPP ...

Purchasing Power Parity is the rate at which the currency ... Despite its advantages, calculating PPP is complex and can be subject to measurement challenges, potentially affecting the accuracy ...