Relative Purchase Power Parity
An expansion of the purchase power parity theory suggesting that prices in countries vary for the same product but that they differ by the same proportional rate over time. The reasons suggested for this price difference include taxes, shipping costs and differences in product quality.

Investopedia Says:
The relative purchase power parity condition suggests that the country with the higher rate of inflation will have a devaluing currency. This is thought to be the case or there will be arbitrage opportunities available.

Related Terms:
Arbitrage
Big Mac PPP
Currency
Deflation
Exchange Rate
Inflation
Purchasing Power
Purchasing Power Parity - PPP

• Nigerian Scam
• Nikkei
• Nil-Paid
• Nine-Bond Rule
• NIO
• NMF
• No Cash-Out Refinance
• No-Cost Mortgage
• No Documentation Mortgage (No Doc)
• No-Fee Mortgage
• No Income / No Asset Mortgage (NINA)
• Noise
• Noise Trader
• Noise Trader Risk
• NOK
• No-Load Fund
• Nominal
• Nominal Effective Exchange Rate (NEER)
• Nominal Effective Exchange Rate (NEER)
• Nominal GDP
• Nominalism
• Nominal Quotation
• Nominal Value
• Nominal Yield
• Nominal Yield Spread