The idea that floating exchange rates will equate the buying power of national currencies is called

Name: The idea that floating exchange rates will equate the buying power of national currencies is called
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Purchasing power parity theory suggests 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. This concept is used to compare the buying power of different currencies.

The Idea That Floating Exchange Rates Will Equate the Buying