Purchasing Power Parity by Mindbitesdotcom. This is an incomplete taster / ad for a course you have to subscribe to, but is still useful as is stands, provided you add to your understanding with other resources.

15: PURCHASING POWER PARITY by InformedTrades:

2 Useful web sites:

http://economics.about.com/cs/money/a/purchasingpower.htm

http://www.wisegeek.com/what-is-purchasing-power-parity-theory.htm

Questions:

1) What is PPP and explain how it works using a hypothetical example?

2) Evaluate the usefulness of PPP theory when applied to the real world.