Current location - Recipe Complete Network - Dinner recipes - Big Mac index, law of one price, and the difference between ppp.
Big Mac index, law of one price, and the difference between ppp.
Big Mac index is an index, law of one price is a law, and PPP is an indicator.

1, Big Mac index is an informal economic index to measure whether the exchange rates of two currencies are reasonable in theory.

2, law of one price simply means that as long as it is the same thing, under the condition that it can be traded and the transaction cost is zero, it should be sold at the same price everywhere.

3. PPP refers to purchasing power parity, which is an indicator of per capita purchasing power.