Tag: Finance

Theory of Purchasing Power Parity

by Nassira

To compare economic productivity and standards of living between countries, economists use an analysis metric called the Purchasing Power Parity that allows them to compare different countries’ currencies through a “basket of goods” approach. The Purchasing Power Parity (PPP) theory is a long-held belief that the exchange rate between two currencies should be the same … Continue reading Theory of Purchasing Power Parity

The Greater Fool Theory:

by Nassira

In order to choose securities to buy, usually, investors conduct a lot of research and do a lot of analysis and calculus to find the best options. But ‘best options’ don’t always mean the same thing for all investors. Different theories and models try to suggest the best paradigms to follow by investors for higher … Continue reading The Greater Fool Theory: