Question: How can I determine if Purchasing Power Parity (PPP) exists between theU.S. and Japan PRESENT TIME, and how do I compare the current size ofthe

How can I determine if Purchasing Power Parity (PPP) exists between theU.S. and Japan PRESENT TIME, and how do I compare the current size ofthe forward-spot differential, to the size of the current inflation ratedifferential between the U.S. and Japan?

How do I use the PPP equation to compare the two differentials mentionedabove? And, how do I tell if that relationship exist here?

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