However, empirical investigations have demonstrated that deviations from PPP are common, with exchange rate dynamics influenced by varying structural, institutional, and market-specific factors.

Learn the factors that determine a currency's value, from economic theories like PPP and interest rate parity to ...

As EY expects India to be the world’s second-largest economy by 2038 in PPP terms, let's break down what the Purchasing Power ...

While the rand is currently trading at a surprisingly resilient level of R17.70 against the dollar, its real value is closer ...

An EY report projects India's economy to reach USD 20.7 trillion (PPP) by 2030 and potentially become the world's ...

This paper empirically analyzes Japanese long-run exchange rates from several perspectives. Several exchange rate models are considered, including the purchasing power parity, the real interest ...

While economic theory highlights the usefulness of flexible exchange rates in promoting adjustment in international relative prices, flexible exchange rates also can be a source of destabilizing ...

We assess the progress made by the profession in understanding real exchange rate behavior through a selective and critical, but nonetheless expository, review of the literature. Our reading of the ...

The Big Mac Index is a common measure of exchange rates, but can it be used to make trading decisions? Find out what the Big Mac Index is and how it works. What is the Economist’s Big Mac Index ...

Purchasing parity provides a useful means of comparison since exchange rates can fluctuate significantly, yet the actual in-country costs of goods remain unchanged.