#866154

#866154: In its relative form, PPP says that the rate of change of the exchange rate is approximately equal to the difference between inflation rates.

In its relative form, PPP says that the rate of change of the exchange rate is approximately equal to the difference between inflation rates.
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Тематика: Валютные операции во внешней торговле Ведение операций с иностранной валютой и чеками Внешнеторговые сделки
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Speculation and efficient markets also produce the relative form of the PPP condition in terms of expected values. Empirical support for the PPP condition is high, although there is some evidence it may hold in the long run. The reasons the law of one price and PPP do not hold include transportation costs, tariffs, quotas, and the fact that there are goods and services that are non-tradable. A country's balance of payments accounts include all of the following EXCEPT The fact that empirical evidence does support PPP may be due to statistical difficulties in evaluating the principle.