English version

purchasing power parity

From Longman Business Dictionarypurchasing power parityˈpurchasing ˌpower ˌparity (abbreviation PPP) [uncountable]ECONOMICSFINANCE if two currencies have purchasing power parity, an amount of one country’s currency needed to buy particular goods there will buy the same amount of goods in another country when exchanged into the currency of that country. This is used to see if currencies are correctly valued against each other on the CURRENCY EXCHANGE marketsMost developing countries keep the exchange rates of their currencies low compared to purchasing power parity rate. This allows them to limit imports and stimulate exports. parity
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