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Purchasing power parity

LC control 85109168
Topical headingPurchasing power parity
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Variant(s)Law of one price
One price, Law of
Parity, Purchasing power
See alsoForeign exchange
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Scope noteHere are entered works discussing the theory which states that exchange rates between currencies are in equilibrium when their purchasing power is the same in each of two countries.
Found inRogoff, K. The law of one price over 700 years, c2001.
Shim, J.K. Dictionary of economics, 1995: p. 205 (Law of one price, see: Purchasing power parity)