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Number of Pages 8
An 8 page paper discussing the purchasing power parity (PPP) measure as used to compare movements of currencies on the world market and against each other. Even where exchange rates are fully free-floating the PPP is useful for comparing currencies and predicting which currently are undervalued and can be expected to rise in the future. The purpose here is to assess the statement, "A country's choice between a hard peg and floating exchange rate depends in part on the characteristics of the economy and in part on its inflationary history." Bibliography lists 10 sources.
File: CC6_KSfinXchgPar.rtf
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