SURVEY OF INTERNATIONAL ECONOMICS COURSE

MODULE 13:
PURCHASING POWER PARITY

Textbook Reading:

Purchasing Power Parity
Read all sections.

Presentation Slides:

Recent Events/Analysis:

The Economist's Big Mac Index
This page displays a great interactive Table that provides the most recent info about Big Mac prices around the world.

Wikipedia GDP Data
GDP (nominal)
GDP (PPP)
GDP (nominal) per capita
GDP (PPP) per capita

Numbeo Cost of Living Indexes
This page shows a ranking of world cities on the basis of costs of living. This website also maintains data about many aspects of cost of living around the world and also enables side-by-side comparisons.

Comparative Price Levels for OECD countries
these numbers are the same as the real exchange rates.

OVERVIEW

This session presents the theory of purchasing power parity. The logic of the theory as an explanation for exchange rate movements is provided. More importantly, the supplemental readings help teach the way PPP exchange rates are used to make international comparisons of economic data.

VIDEO LECTURE

This lecture was recorded in Fall 2016. It is 86 minutes long.

ANSWER KEY

Click HERE for answers to the textbook questions.