Purchasing power parity (PPP) is an economic concept that compares the relative value of currencies by examining the cost of ...

Pete Rathburn is a copy editor and fact-checker with expertise in economics and personal finance and over twenty years of experience in the classroom. Learn about our editorial policies Purchasing ...

The economic theory of PPP is commonly used to compare the economic health of countries across the world. We take a look at the different types of purchasing power parity and how the theory applies to ...

What Is Purchasing Power Parity? In academic terms, purchasing power parity is the rate of currency conversion which must occur between two economies to equalize the cost of a basket of goods between ...