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 Glossary   >   R   >   "Relative purchasing power parity (RPPP)" Definition   

        Relative purchasing power parity (RPPP)

Idea that the rate of change in the price level of commodities in one country relative to the price level in another determines the rate of change of the exchange rate between the two countries currencies.

Relative purchasing power parity (RPPP)


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Relative purchasing power parity (RPPP) - Idea that the rate of change in the price level of commodities in one country relative to the price level in another determines the rate of change of the exchange rate between the two countries currencies.


Relative purchasing power parity (RPPP) : idea that the rate of change in the price level of commodities in one country relative to the price level in another determines the rate of change of the exchange rate between the two countries currencies.