Parity example sentences

When the real exchange rate is equal to one, the two countries are said to be in purchasing power parity.However, in the long run, purchasing power parity plays an important role.If the real exchange rate is equal to one, currencies are at purchasing power parity.Exchange Rates in the Long Run: The Purchasing Power Parity (PPP) theory is used to make long-run predictions about exchange rates in a flexible exchange rate system.You may also need to clarify the concept of purchasing power parity that is used to calculate per capita income in Table It is necessary to keep in mind that these terms are used as an aid to the discussion and not something to be memorised.The rates would fluctuate between an upper and a lower limit, these limits being set by the costs of melting, shipping and recoining between the two Currencies To maintain the official parity each country needed an adequate stock of gold reserves.