Power Purchasing Power

Power purchase parity (PPP) is the theory that the nominal exchange rate between two currencies must equal the ratio of the total price of the two countries. Therefore, the currency unit of a country should have the same purchasing power in other countries (Taylor and Taylor, 2004). This concept is derived from the price law explaining the existence of a competitive market structure and the lack of public trade barriers. If prices are expressed in a common currency, the same products are sold at the same price in two different markets It must be sold. , 2012).

Living expenses> Local purchasing power: Local purchasing power shows the relative purchasing power of goods and services purchased in the cities to earn average wages in cities. If the domestic purchasing power is 40, this means that the average wage of the resident of the city can buy 60% of the typical goods and services less than the average salary of New York City resident. Living expenses> Market prices> Cigarettes> Marlboro packaging: Donations from Afghanistan, the Orlando islands, Andorra, and 81 other countries Besides 0-50, Albania, Algeria, Armenia and 19 other countries and more than 100 countries from more than 100 countries -100 Donation Contribution to Argentina, Australia, Austria, and 82 other countries. These surveys were conducted by numbeo.com from May 2011 through February 2014 (US sample survey). Respondents were asked about the price of tobacco packs (Marlboro). Current dollar price

Purchasing power parity> GDP per capita> purchasing power parity> current international dollar: per capita GDP based on purchasing power parity (PPP). Purchasing power parity GDP is domestic purchasing power of GDP converted purchasing power parity into international dollar, which is the same as US dollar purchasing power. The gross domestic product of the purchaser's price is the sum of the added value of all producers residing in the economy plus the product tax minus subsidies not included in the value of the product. Depreciation of manufacturing assets or consumption and deterioration of natural resources are not deducted from the calculation. Current international dollar data

In the process of monetization, the purchasing power of currency goods surges. Many people comment that improving the purchasing power of bit coins produced "bubble". This term is often low to indicate that Bitcoin is highly overestimated but it is certainly appropriate. A common feature of all currency products is that their purchasing power is higher than purchasing power that can be indicated by the value of individual use. In fact, much of the historical funds are useless. The difference between the exchange value indicated by the purchasing power of currency products and their original use can be regarded as "currency premium". Currency premium will increase as monetary items change during the monetization stage (described in the section above). However, the premium is not a straight line, it is not a predictable line.