The Purchasing Power Parity Debate
نویسندگان
چکیده
Our willingness to pay a certain price for foreign money must ultimately and essentially be due to the fact that this money possesses a purchasing power as against commodities and services in that country. On the other hand, when we offer so and so much of our own money, we are actually offering a purchasing power as against commodities and services in our own country. Our valuation of a foreign currency in terms of our own, therefore, mainly depends on the relative purchasing power of the two currencies in their respective countries. Gustav Cassel, economist (1922, pp. 138–39) The fundamental things apply As time goes by. Herman Hupfeld, songwriter (1931; from the film Casablanca, 1942)
منابع مشابه
Purchasing power parity measures: advantages and limitations - ODI Background Notes
D iscussion and analysis on international comparison using Purchasing Power Parity (PPP) have been somewhat neglected in recent years. With recent shifts in economic growth and constantly changing poverty dynamics, as well as forthcoming major evaluations of progress on the Millennium Development Goals (MDGs), it is an opportune time to revive the debate. This paper examines what PPP tries to d...
متن کاملPurchasing Power Parity Hypothesis In OIC Countries: Evidence From Panel Unit Root Tests With Heterogeneous Structural Breaks
متن کامل
Some Evidence of Purchasing Power Parity
Empirical support for purchasing power parity is mixed with results dependent on the time frame and countries under examination, the methodology employed, attempts to control for aggregation bias in the data, and whether adjustments are made to account for productivity differences across nations. As a central component of macroeconomic thinking, purchasing power parity is battered and battle-wo...
متن کاملGross domestic product and health expenditure associated with incidence, 30-day fatality, and age at stroke onset: a systematic review.
BACKGROUND AND PURPOSE Differences in definitions of socioeconomic status and between study designs hinder their comparability across countries. We aimed to analyze the correlation between 3 widely used macrosocioeconomic status indicators and clinical outcomes. METHODS We selected population-based studies reporting incident stroke risk and/or 30-day case-fatality according to prespecified cr...
متن کامل