November 2011
Beginner
335 pages
9h 33m
English
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OECD-Eurostat PPP Program
Since the 1960s, the Organization of Economic Cooperation and Development (OECD) in conjunction with Eurostat established the PPP Program to determine exchange rates for euro zone- and OECD-member nations. 2008 marks the ninth round of the PPP (OECD 2010).
The program gauges exchange rates among nations by a comparison of prices paid for products and services between nations’ GDPs. By a comparison of prices paid within the basket of goods measured for GDP, the PPP Program can determine an approximation of the health of an economy in terms of future GDP levels and exchange rates.
With floating exchange rates, a whole new body of knowledge has developed over the years to explore the validity of Cassel's PPP, only to determine ...
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