Dive into the economics behind Purchasing Power Parity (PPP) in this video exploring its macro implications through Absolute PPP and Relative PPP. We begin with an overview of these key theories, followed by a detailed explanation of Relative PPP and its role in exchange rate movements. Next, we break down Absolute PPP, showing how it predicts exchange rates based on price levels across countries. Perfect for finance and economics enthusiasts, this video simplifies PPP concepts for CFA and FRM candidates!
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Chapters:
0:00 – Overview: Absolute PPP Vs Relative PPP
1:54 – Relative Purchasing Power Parity (PPP) Explained
3:24 – Absolute Purchasing Power Parity (PPP) Explained
*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
