The other uses the purchasing power parity (PPP) exchange rate—the rate at which the currency of one ... more to global growth than all advanced economies combined (see chart). Which country is richer ...

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.

One snag in applying this theory is finding exactly the same things to purchase in both countries. McDonald’s solves that ...

Yet the volatility of G-3 exchange rates has dropped only marginally since the 1970s (see chart). Where is the windfall that ... First, even though Casell's theory of purchasing power parity ...