wanted to double check the purchasing power parity, as the equation is: Counter rate * Counter Inflation rate (1.inflation) / Base Inflation rate (1.inflation)
To my knowledge, if you have $1.80 = £1 – this means that the £ is the base and the $1.80 is the counter.
In ex 1 of chapter 22: $ = £1.70 To my understanding, the £1.70 is the counter, hence the inflation of UK is of the counter;right? I am asking since the answer treats the £1.70 as the base. Could you kindly clarify please?