I want to add a slightly pedantic note, but also slightly helpful to avoid future confusion:
’Purchasing power parity” is a condition on the exchange rate … the exchange rate level that would set the purchasing power equal between two countries.
In this post, and in Toby Ord’s footnote, I think we should just be referring to “purchasing power”.
I want to add a slightly pedantic note, but also slightly helpful to avoid future confusion:
’Purchasing power parity” is a condition on the exchange rate … the exchange rate level that would set the purchasing power equal between two countries.
In this post, and in Toby Ord’s footnote, I think we should just be referring to “purchasing power”.