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Purchasing Power Parity Formula

Sseanog9111y ago
Hi, Is the formula Forward Rate = Current Spot Rate[1+inflation in the home country / 1+ inflation in the second country)] In the BPP kit it is the other way around but i always thought it was the above, Thanks
MikeLittleMikeLittleTutor11y ago#1
Which page have you posted this on?
Sseanog9111y ago#2
Sorry Mike, its supposed to be F9. I will repost thanks!
MikeLittleMikeLittleTutor11y ago#3
Thank heavens for that! I couldn't have answered it otherwise :-)
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