Lecture

Exchange Rates and PPP

In course

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Description

This lecture discusses the comparison between the PPP exchange rate and the market exchange rate using examples of Krona and Towers, as well as the GDP of two countries expressed in different currencies. It explains how to calculate the GDP of a country using market exchange rates and PPP exchange rates, and concludes with a discussion on whether the dollar is undervalued or overvalued compared to the euro.

Instructor

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Official source

https://mediaspace.epfl.ch/media/0_drhqyew7

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Ontological neighbourhood

Economics

Macroeconomics: Keynesian economics

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