noun
purchasing power parity; PPP
Economics term for comparing currencies via the cost of a basket of goods.
購買力平価で計算すると、その国のGDPは大きく見える。
When calculated by purchasing power parity, that country's GDP looks large.
為替レート is the market exchange rate, while 購買力平価 is a theoretical rate based on purchasing power.
Compound of 購買力 (purchasing power) and 平価 (parity).