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  2. Share Prices
  3. Finance Glossary
  4. Terms Beginning With P
  5. Purchasing Power Parity

Purchasing Power Parity

Definition of 'Purchasing Power Parity'

The theory that foreign exchange rates are in equilibrium when they can purchase the same amount of goods at the prevailing exchange rate.

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Related Terms

Interest Rate Parity of Exchange Rate DeterminationGeneral InflationPump PrimingPurchasing Power of MoneyReal Cash FlowsShareholder Wealth MaximisationShareholder Wealth MaximizationToken MoneyTrade UnionInterest Rate ParityAppropriation AccountAquisitionBook-BuildingBusiness Expansion SchemeSecondary FundsAntitrustEconomic SovereigntyGolden SharesHorizontal IntegrationMarket Power

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