A standard commodity basket costs $300 in the U.S. and £100 in the U.K., and the current spot exchange rate S($/£)=$2/£.
Posted: Wed Mar 09, 2022 8:40 am
A standard commodity basket costs $300 in the U.S. and £100 in
the U.K., and the current spot exchange rate S($/£)=$2/£. According
to theories based on purchasing power parity (PPP), is the pound
expected to appreciate or depreciate against the US dollar?
the U.K., and the current spot exchange rate S($/£)=$2/£. According
to theories based on purchasing power parity (PPP), is the pound
expected to appreciate or depreciate against the US dollar?