Encyclopedia of Public Health

2008 Edition
| Editors: Wilhelm Kirch

Purchasing Power Parity

Reference work entry
DOI: https://doi.org/10.1007/978-1-4020-5614-7_2880

Synonyms

Currency conversion rates

Definition

The term Purchasing Power Parity refers to currency conversion rates that convert to a common currency – mostly US$ – and equalize the purchasing power of different currencies. In other words, they eliminate the differences in price levels between countries in the process of conversion.

Copyright information

© Springer-Verlag 2008