Purchase Power Parity ( PPP ) in Relation to Consumer Prices

Paper Summary:

Tests the PPP hypothesis using four European Community (EC) member states (France, Germany, Italy, UK). PPP theory. Discusses underlying bases of the PPP model; exchange rates assumptions; trading patterns & rate of inflation. Problems with use of the model. Method of research design. Results. Summary & conclusions. Four Exhibits.

From the Paper:

"Testing the Purchasing Power Parity Hypothesis Over the Long-Term in Relation to Consumer Prices in France, Germany, Italy, and the United Kingdom
Introduction
This study tested the purchasing power parity (PPP) hypothesis in relation to consumer prices in four European Community (EC) member states. A background discussion on the PPP model follows this introduction. An explanation of the method used in this research follows the background discussion, a presentation of the data follows the explanation of the method, and the results of the research performed follow the presentation of the data.


Background Discussion
The underlying basis of the PPP model a contention that..."

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