Purchasing Power Parity
Interact with the simulation below. Use the "Inflate" and "Deflate" buttons to change the prices in the Eurozone. Observe how the price changes affect the implied PPP exchange rate compared to the fixed market rate.
Purchasing Power Parity
Interact with the simulation below. Use the "Inflate" and "Deflate" buttons to change the prices in the Eurozone. Observe how the price changes affect the implied PPP exchange rate compared to the fixed market rate.