Relative Purchase Power Parity

Filed Under » Economics , Forex

	Definition of 'Relative Purchase Power Parity' An expansion of the purchase power parity theory, which suggests that prices in countries vary for the same product but that they differ by the same proportional rate over time. The reasons suggested for this price difference include taxes, shipping costs and differences in product quality.
	Investopedia explains 'Relative Purchase Power Parity' The relative purchase power parity condition suggests that countries with higher rates of inflation will have a devalued currency.

Related Definitions

Purchasing Power Parity - PPP

An economic ...
Read More »
Currency

A generally ...
Read More »
Exchange Rate

The price of one ...
Read More »
Purchasing Power

1. The value of ...
Read More »
Inflation

The rate at ...
Read More »
Deflation

A general ...
Read More »
Arbitrage

The simultaneous ...
Read More »
Big Mac PPP

A survey done by ...
Read More »
Starbucks Index

A representation ...
Read More »
New York Dollar

The buying power ...
Read More »

Search results for

'Relative Purchase Power Parity'

CFA Level 1 Study Guide - Global Economic Analysis - Absolute and ...

http://www.investopedia.com/exam-guide/cfa-level-1/global-economic-analysis/absolute-relative-purchasing-power-parity.asp

... Pegged Exchange Rate Systems; 5.18 Absolute and Relative Purchasing Power
Parity; 5.19 Relative Purchasing Power Parity. Chapter 6 ...
CFA Level 1 Study Guide - Global Economic Analysis - Relative ...

http://www.investopedia.com/exam-guide/cfa-level-1/global-economic-analysis/relative-purchasing-power-parity.asp

... Pegged Exchange Rate Systems; 5.18 Absolute and Relative Purchasing Power
Parity; 5.19 Relative Purchasing Power Parity. Chapter 6 ...
Hamburger Economics: The Big Mac Index

http://www.investopedia.com/articles/fundamental-analysis/PPP-big-mac.asp

... would be 45 pesos assuming the countries have purchasing power parity. ... exchange rate
so that price parity is restored ... of goods in Mexico is high relative to the ...
4 Ways To Forecast Currency Changes

http://www.investopedia.com/articles/forex/11/4-ways-to-forecast-exchange-rates.asp

... In this situation, the purchasing power parity approach would ... an investor would have
to purchase the countrys ... t just look at the relative economic strength ...
CFA Level 1 Study Guide - Fixed Income Investments - Inflation ...

http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/inflation-risk.asp

... Pegged Exchange Rate Systems; 5.18 Absolute and Relative Purchasing Power
Parity; 5.19 Relative Purchasing Power Parity. Chapter 6 ...
CFA Level 1 Study Guide - Global Economic Analysis - Foreign ...

http://www.investopedia.com/exam-guide/cfa-level-1/global-economic-analysis/foreign-exchange-parity.asp

... Pegged Exchange Rate Systems; 5.18 Absolute and Relative Purchasing Power
Parity; 5.19 Relative Purchasing Power Parity. Chapter 6 ...
CFA Level 1 Study Guide - Global Economic Analysis - Currency ...

http://www.investopedia.com/exam-guide/cfa-level-1/global-economic-analysis/foreign-exchange-parity-influences.asp

... Pegged Exchange Rate Systems; 5.18 Absolute and Relative Purchasing Power
Parity; 5.19 Relative Purchasing Power Parity. Chapter 6 ...
CFA Level 1 Study Guide - Corporate Finance - Stock Dividends and ...

http://www.investopedia.com/exam-guide/cfa-level-1/corporate-finance/stock-dividends-repurchases.asp

... Pegged Exchange Rate Systems; 5.18 Absolute and Relative Purchasing Power
Parity; 5.19 Relative Purchasing Power Parity. Chapter 6 ...
CFA Level 1 Study Guide - Global Economic Analysis - Introduction ...

http://www.investopedia.com/exam-guide/cfa-level-1/global-economic-analysis/default.asp

... Pegged Exchange Rate Systems; 5.18 Absolute and Relative Purchasing Power
Parity; 5.19 Relative Purchasing Power Parity. Chapter 6 ...
CFA Level 1 Study Guide - Ethics and Standards - Standard IB ...

http://www.investopedia.com/exam-guide/cfa-level-1/ethics-standards/standard-independence-objectivity.asp

... Pegged Exchange Rate Systems; 5.18 Absolute and Relative Purchasing Power
Parity; 5.19 Relative Purchasing Power Parity. Chapter 6 ...

An Overview Of Annuities

These contracts provide a guaranteed income stream. Learn how they work and their benefits.
Read More »
403(b) Plan Tutorial

Learn about the set-up, the contributions to and the distributions from this retirement plan for certain employees of public schools and tax-exempt organizations.
Read More »
Find High Yield CDs

Retire in style. Search for the 100 highest yielding CD's from Bankrate.com. Click Here!
Read More »
Explaining Types Of Fixed Annuities

Learn about this popular retirement tool, its pros and cons and how annuities work to create a guaranteed regular stream of retirement income.
Read More »
Is Your Investment Manager Skilled Or Lucky?

Being familiar with composite presentations will help you better assess the quality of an investment manager's performance.
Read More »
Get A Free Ride From Credit Companies

Find out how to make your credit cards work for you - not against you.
Read More »
How Credit Cards Affect Your Credit Rating

The average American household has four cards, but does that mean more is better?
Read More »
Free Car Payment Insurance: What's The Catch?

Many dealers are offering payment protection plans on new cars. Are they right for you?
Read More »
Tuition Insurance Takes Sting Out Of Withdrawal

Dropping out of school can mean forfeiting all your tuition. Find out what protection is available.
Read More »
Buying Private Health Insurance

Getting your own policy isn't easy or cheap but in some cases, it's well worth the effort.
Read More »

Trading Center

Partner Links

Translating "Fed Speak" Into Plain English	The Complete Guide To Vacation Properties		Problems Loom For The Chinese Economy	Did Facebook Overpay for Instagram
	U.S. Government Cracks Down On Insider Trading	Ethical Investing Tutorial	Beginner's Guide To Using MetaTrader 4

Term Of The Day

More News »

More Analysis »

More Features »

More News »

More News »

Relative Purchase Power Parity

Definition of 'Relative Purchase Power Parity'

Investopedia explains 'Relative Purchase Power Parity'

Related Definitions

'Relative Purchase Power Parity'

Related Articles

Translating "Fed Speak" Into Plain English

The Complete Guide To Vacation Properties

Problems Loom For The Chinese Economy

Did Facebook Overpay for Instagram

U.S. Government Cracks Down On Insider Trading

Ethical Investing Tutorial

Beginner's Guide To Using MetaTrader 4