What is relative PPP, and why does it represent a weaker relationship between exchange rates and prices

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What is relative PPP, and why does it represent a weaker relationship between exchange rates and prices than absolute PPP?

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International Financial Management

ISBN: 978-0132162760

2nd edition

Authors: Geert Bekaert, Robert J. Hodrick

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Question Posted: May 28, 2012 03:36 AM

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What is relative PPP, and why does it represent a weaker relationship between exchange rates and prices

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The theory of relative PPP specifies that exchange rates adjust in response to differenc...View the full answer

International Financial Management

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