Data on international relative prices from industrialized countries show large and systematic deviations from relative purchasing power parity. We embed a model of imperfect competition and variable ...

The study of Purchasing Power Parity (PPP) and price index analysis provides a framework for comparing the real value of currencies and the underlying levels of prices across different economies and ...

Purchasing power refers to the amount of goods and services a person or entity can buy with a given amount of money. It fluctuates over time due to inflation, deflation and changes in income, directly ...