Search for tag: "purchasing power parity"

PPP and Interest Rate Arbitrage

This chapter focuses on the purchasing power parity (PPP) and the interest rate arbitrage. Professor Larraín begins by explaining the law of one price, which states that a good must cost the…

From  SDG Academy 28 plays

International Comparisons of Income (PPP)

One of the challenges that faces macroeconomists is comparing the gross domestic product across countries. Using a numerical illustration of the Purchasing Power Parity (PPP), which is the concept of…

From  SDG Academy 15 plays