Purchasing power parity theory

What is Interest Rate Parity (IRP)? Interest rate parity (IRP) is a theory that the interest rate differential between two countries is equal to the differential between the forward exchange rate and the spot exchange rate. Key points to remember Interest rate parity is the fundamental equation that governs the …

September 1, 2021 by Paul Kennedy This invitation-only commentary is one in a series of global thinkers on the future of American power, examining the forces shaping the country’s global position, from the rise of China to the withdrawal from Afghanistan. Read more here. The economist today Handpicked stories, in …

It tastes the same, the packaging is the same – but the different costs of a McDonald’s Big Mac may contain clues to a country’s economic health, and in Lebanon the diagnosis is not correct. If fast food is your drug of choice, Bliss Street in West Beirut lives up …

By Jérôme-Mario Utomi It is no longer news that across the world there is a persistent call to nations, regions and continents to move towards a more varied structure of national production and trade, as there is no This is not only a strategy to encourage positive economic growth and …

Chainalysis found that bitcoin use has increased in developing countries as citizens seek to protect themselves from the currency’s depreciation. Global adoption of bitcoin and cryptocurrency has exploded in a year, up more than 880%, according to new data from Chainalysis. The company’s Global Crypto Adoption Index was released yesterday …

Chainalysis yesterday released the Global Crypto Adoption Index 2021, which saw Vietnam take first place Blockchain research and data platform Chainalysis yesterday announced the release of the 2021 Global Cryptocurrency Adoption Index as part of its series of geographic cryptocurrency reports. Chainalysis used three different metrics to create the index …

Using an exchange rate forecast can help brokers and businesses make informed decisions to minimize risk and maximize returns. There are many methods of forecasting exchange rates. Here, we’ll take a look at some of the more popular methods: purchasing power parity, relative economic strength, and econometric models. 3 ways …

IIt has not always been easy to discern from a Western perspective, but the rise of China and Asia has been the most important economic development of the past four decades. In 1979, many Chinese had an average income of less than a dollar a day. Today, Shenzhen, the technological …

What is the parity price? The parity price refers to a price level that fixes two assets or securities of equal value. It is a concept that is used in several markets, including fixed income, stocks, commodities and convertible bonds. For convertible bonds, the concept of parity price is used …

Outlook We wrote yesterday that Fed chief Powell is unlikely to say anything different, and it was the right move. We have to wait for a cutback announcement for at least one more meeting and probably two, and then the rollback implementation in the second, third, or fourth meeting that …