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

Purchasing power refers to the amount of goods and services a person or entity can buy with a given amount of money. It ...

One of the two main methods of conversion uses market exchange rates—the rate prevailing in the foreign exchange market (using either the rate at the end of the period or an average over the period).

and countless other factors can cause currencies to have different purchasing power. If you wanted to calculate the exchange rate that would be implied by the purchasing power parity theory ...