購こう買ばい力りょく平へい価か説せつ

noun

purchasing power parity theory; PPP theory

Economics term for the theory that exchange rates should adjust to equalize the purchasing power of different currencies.

• 購こう買ばい力りょく平へい価か説せつによれば、長ちょう期き的てきには為替かわせレートは物ぶっ価か水すい準じゅんを反はん映えいする。

  According to purchasing power parity theory, exchange rates reflect price levels in the long run.