Purchasing power parity is a theory that states that changes in exchange rates between countries are related to changes in relative prices.

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Purchasing Power Parity (PPP) is a theory which posits that in the long run, exchange rates should adjust so that an identical good in two different countries will have the same price when expressed in a common currency, essentially linking changes in exchange rates to changes in relative price levels between countries.

Purchasing Power Parity Is a Theory That States That Changes