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Economics, Monetary Theory/Policy
Year 4

Theory of relative purchasing power parity. Course :International Economics


Assume that the inflation rate in the U.S. and japan are 4% and 2% , respectively and that the current spot rate is $.0083333 per Japanese yen or 120 Japanesse yen per one U.S. dollar. How much should the U.S. dollar depreciate in order to maintain purchasing power parity? Be sure to show your

By OTA:  Snezhanna Kovtun, PhD (IP)

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    • Solution_Relative Purchasing Power Parity.doc
    • Desciption_Relative Purchasing Power Parity.doc
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