Explain the theory of purchasing power parity, Financial Econometrics

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Explain the theory of purchasing power parity

Response to the following problem:

Explain the theory of purchasing power parity (PPP). Based on this theory, what is a general forecast of the values of currencies in countries with high inflation?

Make sure you use enough details to support your answer.

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Financial Econometrics: Explain the theory of purchasing power parity

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Financial Econometrics: Explain the theory of purchasing power parity

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