标题: purchase power partity [打印本页] 作者: parott 时间: 2011-7-13 16:24 标题: purchase power partity
can purchase power partity be S * ( 1+ Inflation on F)/ ( 1+Inflation on D )
one question solved based on the above, when to use it like this ???作者: 19831985 时间: 2011-7-13 16:24
The way I solve it is
$/Pound = $ is domestic Pound is foreign
$/pound = spot x (1+inflation $)/(1+inflation pound)
The only time i use foreign in the numerator is when calculating real exchange rate (i.e using Price Levels)
