{"id":23134,"date":"2015-02-02T05:28:21","date_gmt":"2015-02-02T05:28:21","guid":{"rendered":"http:\/\/vskills.in\/certification\/blog\/?p=23134"},"modified":"2024-04-03T13:15:14","modified_gmt":"2024-04-03T07:45:14","slug":"introducing-ppp-theory","status":"publish","type":"post","link":"https:\/\/www.vskills.in\/certification\/blog\/introducing-ppp-theory\/","title":{"rendered":"Introducing PPP Theory"},"content":{"rendered":"<p style=\"text-align: center\"><a ref=\"magnificPopup\" href=\"http:\/\/vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/01\/introducing-ppp-theory.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-23666\" alt=\"introducing-ppp-theory\" src=\"http:\/\/vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/01\/introducing-ppp-theory-268x300.jpg\" width=\"268\" height=\"300\" srcset=\"https:\/\/www.vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/01\/introducing-ppp-theory-268x300.jpg 268w, https:\/\/www.vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/01\/introducing-ppp-theory.jpg 402w\" sizes=\"auto, (max-width: 268px) 100vw, 268px\" \/><\/a><\/p>\n<p>Wherever we go, we will always find a same price for the given commodity. In order to ensure that the identical products and services in the two different countries cost same, Purchasing Power Parity (PPP) Theory is brought into use worldwide to compare the income level of the countries. PPP theory makes use of the law of one price which states that the purchasing power of the two different currencies must remain at parity i.e, a given commodity must have the same price in the different countries.<\/p>\n<p>The Absolute Purchasing Power Parity Theory ensures that the equilibrium exchange rate between the two currencies is equivalent to the ratio of the price levels in the two nations i.e, if the identical goods of two countries are measured in the same currency, they must cost same to each and every individual.<\/p>\n<p>The relative PPP theory states that a change in the exchange rate of the different countries\u00a0 over a period of time must be accompanied by a proportional \u00a0and relative change in the price level of the same countries over the same period of time so that the prices of commodities remain same irrespective of the place.<\/p>\n<p><a href=\"http:\/\/www.vskills.in\/certification\/accounting-banking-and-finance\">Click here for government certification in Accounting, Banking &amp; Finance<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Wherever we go, we will always find a same price for the given commodity. In order to ensure that the identical products and services in the two different countries cost same, Purchasing Power Parity (PPP) Theory is brought into use worldwide to compare the income level of the countries. PPP theory makes use of the&#8230;<\/p>\n","protected":false},"author":470,"featured_media":23666,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_joinchat":[],"footnotes":""},"categories":[1519],"tags":[1099,1968],"class_list":["post-23134","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accounting-banking-and-finance","tag-ppp","tag-purchasing-power-parity"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Introducing PPP Theory - Vskills Blog<\/title>\n<meta name=\"description\" content=\"What is Purchasing Power Parity or PPP?\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.vskills.in\/certification\/blog\/introducing-ppp-theory\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Introducing PPP Theory - Vskills Blog\" \/>\n<meta property=\"og:description\" content=\"What is Purchasing Power Parity or PPP?\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.vskills.in\/certification\/blog\/introducing-ppp-theory\/\" \/>\n<meta property=\"og:site_name\" content=\"Vskills Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/vskills.in\" \/>\n<meta property=\"article:published_time\" content=\"2015-02-02T05:28:21+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-04-03T07:45:14+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/01\/introducing-ppp-theory.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"402\" \/>\n\t<meta property=\"og:image:height\" content=\"450\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Hemlata\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Hemlata\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/introducing-ppp-theory\/\",\"url\":\"https:\/\/www.vskills.in\/certification\/blog\/introducing-ppp-theory\/\",\"name\":\"Introducing PPP Theory - Vskills Blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/introducing-ppp-theory\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/introducing-ppp-theory\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/01\/introducing-ppp-theory.jpg\",\"datePublished\":\"2015-02-02T05:28:21+00:00\",\"dateModified\":\"2024-04-03T07:45:14+00:00\",\"author\":{\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/#\/schema\/person\/799c0dafbedb246c39dcc7748baa4025\"},\"description\":\"What is Purchasing Power Parity or PPP?\",\"breadcrumb\":{\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/introducing-ppp-theory\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.vskills.in\/certification\/blog\/introducing-ppp-theory\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/introducing-ppp-theory\/#primaryimage\",\"url\":\"https:\/\/www.vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/01\/introducing-ppp-theory.jpg\",\"contentUrl\":\"https:\/\/www.vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/01\/introducing-ppp-theory.jpg\",\"width\":402,\"height\":450},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/introducing-ppp-theory\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.vskills.in\/certification\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Introducing PPP Theory\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/#website\",\"url\":\"https:\/\/www.vskills.in\/certification\/blog\/\",\"name\":\"Vskills Blog\",\"description\":\"Vskills - A Initiative in Assessment to Enhance Employability\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.vskills.in\/certification\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/#\/schema\/person\/799c0dafbedb246c39dcc7748baa4025\",\"name\":\"Hemlata\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/83e5e6793d9cef763ee9c8f84565bc9fb7ee60ed1a7e6170a1a92920b3aa0dcd?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/83e5e6793d9cef763ee9c8f84565bc9fb7ee60ed1a7e6170a1a92920b3aa0dcd?s=96&d=mm&r=g\",\"caption\":\"Hemlata\"},\"description\":\"Born and brought up in Delhi, I am an undergraduate pursuing B.A.ECONOMICS (HONS) from Shri Ram College of Commerce. I am some kind of pleasure seeking and a risk loving person having a mindset \u201cnothing is impossible if we have faith in our abilities\u201d.\",\"url\":\"https:\/\/www.vskills.in\/certification\/blog\/author\/hemlata\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Introducing PPP Theory - Vskills Blog","description":"What is Purchasing Power Parity or PPP?","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.vskills.in\/certification\/blog\/introducing-ppp-theory\/","og_locale":"en_US","og_type":"article","og_title":"Introducing PPP Theory - Vskills Blog","og_description":"What is Purchasing Power Parity or PPP?","og_url":"https:\/\/www.vskills.in\/certification\/blog\/introducing-ppp-theory\/","og_site_name":"Vskills Blog","article_publisher":"https:\/\/www.facebook.com\/vskills.in","article_published_time":"2015-02-02T05:28:21+00:00","article_modified_time":"2024-04-03T07:45:14+00:00","og_image":[{"width":402,"height":450,"url":"https:\/\/www.vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/01\/introducing-ppp-theory.jpg","type":"image\/jpeg"}],"author":"Hemlata","twitter_misc":{"Written by":"Hemlata","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.vskills.in\/certification\/blog\/introducing-ppp-theory\/","url":"https:\/\/www.vskills.in\/certification\/blog\/introducing-ppp-theory\/","name":"Introducing PPP Theory - Vskills Blog","isPartOf":{"@id":"https:\/\/www.vskills.in\/certification\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.vskills.in\/certification\/blog\/introducing-ppp-theory\/#primaryimage"},"image":{"@id":"https:\/\/www.vskills.in\/certification\/blog\/introducing-ppp-theory\/#primaryimage"},"thumbnailUrl":"https:\/\/www.vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/01\/introducing-ppp-theory.jpg","datePublished":"2015-02-02T05:28:21+00:00","dateModified":"2024-04-03T07:45:14+00:00","author":{"@id":"https:\/\/www.vskills.in\/certification\/blog\/#\/schema\/person\/799c0dafbedb246c39dcc7748baa4025"},"description":"What is Purchasing Power Parity or PPP?","breadcrumb":{"@id":"https:\/\/www.vskills.in\/certification\/blog\/introducing-ppp-theory\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.vskills.in\/certification\/blog\/introducing-ppp-theory\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.vskills.in\/certification\/blog\/introducing-ppp-theory\/#primaryimage","url":"https:\/\/www.vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/01\/introducing-ppp-theory.jpg","contentUrl":"https:\/\/www.vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/01\/introducing-ppp-theory.jpg","width":402,"height":450},{"@type":"BreadcrumbList","@id":"https:\/\/www.vskills.in\/certification\/blog\/introducing-ppp-theory\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.vskills.in\/certification\/blog\/"},{"@type":"ListItem","position":2,"name":"Introducing PPP Theory"}]},{"@type":"WebSite","@id":"https:\/\/www.vskills.in\/certification\/blog\/#website","url":"https:\/\/www.vskills.in\/certification\/blog\/","name":"Vskills Blog","description":"Vskills - A Initiative in Assessment to Enhance Employability","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.vskills.in\/certification\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.vskills.in\/certification\/blog\/#\/schema\/person\/799c0dafbedb246c39dcc7748baa4025","name":"Hemlata","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.vskills.in\/certification\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/83e5e6793d9cef763ee9c8f84565bc9fb7ee60ed1a7e6170a1a92920b3aa0dcd?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/83e5e6793d9cef763ee9c8f84565bc9fb7ee60ed1a7e6170a1a92920b3aa0dcd?s=96&d=mm&r=g","caption":"Hemlata"},"description":"Born and brought up in Delhi, I am an undergraduate pursuing B.A.ECONOMICS (HONS) from Shri Ram College of Commerce. I am some kind of pleasure seeking and a risk loving person having a mindset \u201cnothing is impossible if we have faith in our abilities\u201d.","url":"https:\/\/www.vskills.in\/certification\/blog\/author\/hemlata\/"}]}},"_links":{"self":[{"href":"https:\/\/www.vskills.in\/certification\/blog\/wp-json\/wp\/v2\/posts\/23134","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vskills.in\/certification\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vskills.in\/certification\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vskills.in\/certification\/blog\/wp-json\/wp\/v2\/users\/470"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vskills.in\/certification\/blog\/wp-json\/wp\/v2\/comments?post=23134"}],"version-history":[{"count":3,"href":"https:\/\/www.vskills.in\/certification\/blog\/wp-json\/wp\/v2\/posts\/23134\/revisions"}],"predecessor-version":[{"id":71324,"href":"https:\/\/www.vskills.in\/certification\/blog\/wp-json\/wp\/v2\/posts\/23134\/revisions\/71324"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vskills.in\/certification\/blog\/wp-json\/wp\/v2\/media\/23666"}],"wp:attachment":[{"href":"https:\/\/www.vskills.in\/certification\/blog\/wp-json\/wp\/v2\/media?parent=23134"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vskills.in\/certification\/blog\/wp-json\/wp\/v2\/categories?post=23134"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vskills.in\/certification\/blog\/wp-json\/wp\/v2\/tags?post=23134"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}