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An Alternative Version of Purchasing Power Parity

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  • Dinçer Afat
  • Michael Frömmel

Abstract

A vast literature on Purchasing Power Parity (PPP) has evolved and PPP has become the most popular concept in international finance. PPP is applied with various price indices such as consumer price index, wholesale price index, etc. In this article, we introduce a revised version of PPP equation for financial products, which is strongly supported by our panel data analysis.

Suggested Citation

  • Dinçer Afat & Michael Frömmel, 2020. "An Alternative Version of Purchasing Power Parity," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 25(4), pages 511-517, October.
    • Handle: RePEc:wly:ijfiec:v:25:y:2020:i:4:p:511-517
    DOI: 10.1002/ijfe.1767
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