Purchasing power parity: An Application for Turkey (1980-1987)
Author(s)
Advisor
Çapoğlu, GökhanDate
1989Publisher
Bilkent University
Language
English
Type
ThesisItem Usage Stats
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Abstract
Purchasing Power Parity (PPP) is claimed to be the oldest and simplest theory in
determining the exchange rates of currencies. With its three versions, absolute PPP,
relative PPP, and efficient markets PPP, this theory argues that price index levels of
the countries are considered while setting the exchange rates. In this study, a general
review of the theorj' and its failures are initially summarized. As the main purpose
of the paper, the relative PPP has been applied for Turkey between 1980 and 1987 by
taking USA as the comparision country. The application has been concentrated on both
the official and black-market exchange rate determinations.
Keywords
Purchasing Power ParityAbsolute PPP
Relative PPP
Efficient Markets Version of PPP
Wholesale Price Index
Consumer Price Index
Official Exchange Rates
Black-Market Exchange Rates