vásárlóerparitáson

Vásárlóerő-paritás, often abbreviated as PPP, is an economic theory that determines the long-term exchange rate between currencies. It is based on the law of one price, which states that identical goods and services should cost the same in different countries when expressed in a common currency. For example, if a basket of goods costs $100 in the United States and 200 euros in Germany, then according to PPP, the exchange rate should be 1 dollar to 2 euros.

The concept of PPP is used to compare economic productivity and living standards between countries, as it accounts for differences in the cost of living. If a country's currency is undervalued according to PPP, it suggests that its goods and services are cheaper than they would be if the exchange rate were at parity. Conversely, an overvalued currency implies higher domestic prices relative to foreign prices.

While PPP is a useful theoretical framework, it is rarely observed perfectly in reality. Factors such as trade barriers, transportation costs, taxes, and differences in product quality can prevent exchange rates from reaching PPP levels. Despite these limitations, PPP remains an important tool for economists to understand and analyze international price levels and exchange rate movements over extended periods. It is particularly relevant for long-term forecasting rather than short-term currency fluctuations.