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An Alternative Version of Purchasing Power Parity

Dinçer Afat and Michael Frömmel ()

International Journal of Finance & Economics, 2020, vol. 25, issue 4, 511-517

Abstract: A vast literature on Purchasing Power Parity (PPP) has evolved and PPP has become the most popular concept in international finance. PPP is applied with various price indices such as consumer price index, wholesale price index, etc. In this article, we introduce a revised version of PPP equation for financial products, which is strongly supported by our panel data analysis.

Date: 2020
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Handle: RePEc:wly:ijfiec:v:25:y:2020:i:4:p:511-517