HomeDefinitionsCompareDebt Absolute form of purchasing power parityThe financial definition for Absolute form of purchasing power parity:A theory that prices of products of two different countries should be equal when measured by a common currency. Also called the "law of one price." Similar MatchesPurchasing powerPurchasing powerThe amount of credit available for credit trading in a credit, after taking credit into consideration. Purchasing power of the dollarPurchasing power of the dollarThe amount of goods and services that can be exchanged for a dollar as compared with amount of a previous time period. Purchasing power parityPurchasing power parityThe notion that the ratio between domestic and foreign price levels should equal the equilibrium exchange rate between domestic and foreign currencies. Further SuggestionsPurchasing power riskRelative form of purchasing power parity Click to compare definitions of Absolute form of purchasing power parity Click to view definitions beginning ab |