The Purchasing Power Parity Theory Works – Illustrated by the Sad Tale of the Argentine Peso

Posted on by Farok J. Contractor

© 2021, Farok J. Contractor, Distinguished Professor, Management & Global Business, Rutgers Business School On  November 8, 2021, it happened — as predicted by the purchasing power parity (PPP) theory: the Argentine monetary unit crossed the symbolically important threshold of 100 pesos = 1 US dollar (USD). A lurid but sad tale. A century ago, … Continue reading The Purchasing Power Parity Theory Works – Illustrated by the Sad Tale of the Argentine Peso