What Is the Difference Between Relative Absolute PPP

Q: A: Thank you for your terrific question! To distinguish between the two, first consider the more common form of purchasing power parity, Absolute PPP. Absolute PPP A Beginners Guide to Purchasing Power Parity Theory (PPP Theory) The idea is expressed in more detail at A Beginners Guide to Purchasing Power Parity Theory (PPP Theory). Relative PPP PPP Conclusion purchasing power parity arbitrage opportunities to move goods across borders.