PPP
n. uncountablen. Stands for purchasing power parity. A way to compare what money can buy in different countries, rather than just looking at exchange rates. It helps people understand the real cost of living in different places.
n. Abbreviation for purchasing power parity. A theory and economic metric used to compare the relative value of currencies by measuring the cost of a specific basket of goods. Often used to adjust GDP figures to reflect the actual purchasing power of a population.
The economist used PPP to compare the cost of living in London and Delhi.
While the nominal exchange rate suggested the country was poor, its GDP measured by PPP showed a much higher standard of living.
By applying PPP adjustments to global income data, researchers can more accurately assess poverty levels across borders without the volatility inherent in market exchange rates.
Typically used as an uncountable noun or as a modifier before another noun (e.g., 'PPP exchange rates').