At what rate would the currency of one country have to be converted into that of another to buy the same goods and services in each country? How fast is the global economy growing? Is China ...

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.

How fast is the global economy growing? Is China contributing more to global growth than the United States? Is the average person richer in Canada or in Switzerland? These types of questions are of ...