PPP and IRP are different because one always deviates from parity and other does not ever deviate one includes inflation rates and other includes interest rates one holds for single country and other holds for both countries one includes inflation rates and other includes exchange rates

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter6: Managing In The Global Economy
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PPP and IRP are different because
one always deviates from parity and other does not ever deviate
one includes inflation rates and other includes interest rates
one holds for single country and other holds for both countries
one includes inflation rates and other includes exchange rates
Transcribed Image Text:PPP and IRP are different because one always deviates from parity and other does not ever deviate one includes inflation rates and other includes interest rates one holds for single country and other holds for both countries one includes inflation rates and other includes exchange rates
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