Definition
A theory comparing different countries' currencies using the cost of a common basket of goods, used to compare living standards across borders.
Related Macroeconomics terms
Inflation
The general rise in prices over time, reducing the purchasing power of money. Me…
Deflation
A general fall in the price level of goods and services. Less common than inflat…
GDP (Gross Domestic Product)
The total monetary value of all goods and services produced within a country ove…
CPI (Consumer Price Index)
A measure of the average change in prices paid by consumers for a basket of good…
PPI (Producer Price Index)
A measure of price changes from the perspective of domestic producers selling th…
Federal Funds Rate
The interest rate at which banks lend reserves to each other overnight. Set by t…
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Browse 350+ finance, crypto, and fintech terms across 12 categories in the Digital.Finance glossary.