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Answered Same DayOct 12, 2022

Answer To: g¢1-S¢lSe guiseyoind Ul» ;ouuouo23 fo jouamop JRA ATA ERG [oc 1) g sonouo? 1G { “uospIeUOLRl: ;...

Megha answered on Oct 12 2022
52 Votes
Case Study
Turkish Lira and Purchasing Power Parity
1. Does purchasing power parity exist for the
Turkish-US dollar exchange rate?
The purchasing power affects the valuation of the currency of the country. The higher the purchasing parity, the higher value of the currency. Although the inflation rates in Turkey have fallen, they are still the highest in the world. The USD purchasing power affects parity. To maintain this purchasing power parity (PPP), it is assumed the exchange rates will continue to change, which is the case between the Turkish Lira and the USD. There is a stark difference in the productivity of the goods between the two countries. Therefore, the higher parity and the gap between the exchange rate. It's been noted for the Turkish Lira that there is a long relationship between the rate of exchange and the price indexes within the last 20 years.
2. Plot past annual exchange rate changes...
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