Purchasing power parities (PPPs) are indicators of price level differences across countries.They indicate how many currency units a particular quantity of goods and services costs in different countries. PPPs can be used as currency conversion rates to convert expenditures expressed in national currencies into an artificial common currency (the Purchasing Power Standard, PPS), thus eliminating the effect of price level differences across countries. In particular, PPPs can be used to compare the Gross Domestic Produ…
