Using PPP theory

This topic has 3 replies, 2 voices, and was last updated 2 years ago by John Moffat.

Viewing 4 posts - 1 through 4 (of 4 total)

Author
Posts
May 31, 2023 at 4:27 am #685539
Felix
Participant
- Topics: 8
- Replies: 6
Can I simply type PPP or IRP in the exam answers?
Also, is the following relationship to estimate exchange rate correct?
Home or base currency value =
Home country*(1+home inflation rate) ÷ foreign country*(1+foreign inflation rate)
May 31, 2023 at 8:41 am #685572
John Moffat
Keymaster
- Topics: 57
- Replies: 54845
Are you meaning if you can just type the abbreviations? If so, then yes you can.
As far as forecasting a future exchange rate it concerned then you use the formula provided in the exam and my free lectures working through Chapter 22 of our free lecture notes explain how to use the formula, with examples.
May 31, 2023 at 8:53 am #685574
Felix
Participant
- Topics: 8
- Replies: 6
Yes, whether IRP is also a valid abbreviation?
I will review Chapter 22 again.
May 31, 2023 at 4:11 pm #685620
John Moffat
Keymaster
- Topics: 57
- Replies: 54845
Yes, it is a valid abbreviation 🙂
Author
Posts

Viewing 4 posts - 1 through 4 (of 4 total)

The topic ‘Using PPP theory’ is closed to new replies.