Purchasing power parity (PPP) is an economic concept that compares the relative value of currencies by examining the cost of ...

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.

The other uses the purchasing power parity (PPP) exchange rate—the rate at which the currency of one country would have to be converted into that of another country to buy the same amount of goods and ...