November 2009
2 posts
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Forex Systems Forex Blog
Further Information: Best Forex Trade Forex
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Foreign Exchange Forex
Purchasing power parity (ppp) states that the price of a good in one country should equal the price of the same good in another country, exchanged at the current rate-the law of one price. There are two version of ppp, the absolute and the relative version. Lets look at the absolute version first. This version stipulates the exchange rate should be equal to the ratio of the price level of goods...