Economics Check correct, compare, between, somebody, countries

malbec

Hi

Could somebody please confirm this. Whenever we want to compare price levels between countries the DC is the denominator.

For all the other formulas ( PPP, IRP etc ( the DC is the numerator

Is this correct?

Thanks

onelife1

Using direct quotes:

Real rate = spot rate * (P fc)/(P dc)

scarecrow

yes using direct quotes.

the only exeptlion is the price.

For all the rest DC is always the numerator.