THE IMPACT OF PURCHASING POWER PARITY ON THE WELL-BEING OF THE POPULATION (IN THE CASE OF COUNTRIES)
DOI:
https://doi.org/10.51699/ijcm.v22i.431Keywords:
the impact, innovation, innovation potential, absorption potential, parity, small business.Abstract
The theory of purchasing power parity in its simplest form determines that the various ratios of prices for goods in countries are equal to or proportional to the exchange rate. In practice, the calculation of the valuation depends on observable reasons, the exchange rate is quite different from price comparison, which requires special analysis and explanation, including the formulation and testing of a more complex theory of relative purchasing power parity and the exchange rate. The situation is further complicated by the presence of important barriers, a fairly large share of non-tradable goods in the consumption of economic agents, and the discovery of other reasons.
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