Talk:Purchasing power parity

This is the talk page for discussing improvements to the Purchasing power parity article. This is not a forum for general discussion of the subject of the article.

Put new text under old text. Click here to start a new topic. New to Wikipedia? Welcome! Learn to edit; get help. Assume good faith Be polite and avoid personal attacks Be welcoming to newcomers Seek dispute resolution if needed Article policies Neutral point of view No original research Verifiability

Find sources: Google (books · news · scholar · free images · WP refs) · FENS · JSTOR · TWL

Archives: 1Auto-archiving period: 2 years

This  level-5 vital article is rated C-class on Wikipedia's content assessment scale. It is of interest to the following WikiProjects:

Economics Top‑importance Economics portal This article is within the scope of WikiProject Economics, a collaborative effort to improve the coverage of Economics on Wikipedia. If you would like to participate, please visit the project page, where you can join the discussion and see a list of open tasks. Top This article has been rated as Top-importance on the project's importance scale. This article has been marked as needing immediate attention. Finance & Investment High‑importance This article is within the scope of WikiProject Finance & Investment, a collaborative effort to improve the coverage of articles related to Finance and Investment on Wikipedia. If you would like to participate, please visit the project page, where you can join the discussion and see a list of open tasks. High This article has been rated as High-importance on the project's importance scale. This article has been marked as needing immediate attention.

Text and/or other creative content from Purchasing power parity was copied or moved into Relative Purchasing Power Parity with this edit. The former page's history now serves to provide attribution for that content in the latter page, and it must not be deleted as long as the latter page exists.

"Major rewrite"

• I've just done a major rewrite.rajkumar The new version clarifies what the PPP method is, what it's used for and why, and what issues it has. I also removed all references to a PPP "theory." PPP is a method, not a theory. I know of no theory saying that "in equilibrium, the exchange rate that will prevail between two countries will be that which equalizes the prices of traded goods in each country." The whole point of using PPP is that using real exchange rates, goods won't cost the same amount in different countries. Isomorphic 01:46, 10 Jun 2004 (UTC)
  • Because of so called arbitrage some prices strive towards a common price. For example prices for precious metals like gold doesn't range widely across borders. Gold ([1]) cost $420 US dolllars per troy ounce in most parts of the world. If it sold for $200 bucks per ounce in Canada or even China it would sell out pretty quick. While things like a Big Mac is not as easily arbitraged across wide distances.

Price comparisons just horizontal, or vertical too?

Are the comparisons in prices of goods done only horizontally, i.e. comparing the price of a McDonalds in UK and the price of a McDonalds in the US, or do they compare the prices vertically too, like for example the price of a McDonalds hamburger compared to the price of a burger made from Kobe beef?

What's ICP?

What's ICP?

I see it used in this article and elsewhere, but I don't know what it means. Thanks, DavidMCEddy (talk) 12:47, 14 April 2024 (UTC)[reply]

I found it: International Comparison Program. I then found it spelled out in this article and added "(ICP)" immediately after, so others who don't know can more easily find it. I also added it to the "ICP" disambiguation page. DavidMCEddy (talk) 20:13, 14 April 2024 (UTC)[reply]

Quality

Range and quality section doesn't mention quality at all which is a highly relevant point.

The quality assurance that you get from a purchase in the EU is going to be far higher than most other regions. You are paying not just for the product but the inherent QA. 37.228.238.174 (talk) 12:23, 1 May 2025 (UTC)[reply]

"Gdpppp" listed at Redirects for discussion

The redirect Gdpppp has been listed at redirects for discussion to determine whether its use and function meets the redirect guidelines. Readers of this page are welcome to comment on this redirect at Wikipedia:Redirects for discussion/Log/2025 September 30 § Gdpppp until a consensus is reached. Suonii180 (talk) 19:45, 30 September 2025 (UTC)[reply]