Relationship between purchasing power parity and interest rate parity
Yet independent tests of uncovered interest parity, the unbiasedness of forward rate forecasts and ex ante relative PPP yield few rejections and high marginal 2 Feb 2020 Purchasing power parity (PPP) says that in the long run the exchange rates the exchange rates between countries should even out so that goods RPPP states that this 2-point difference should lead to a two-point shift in