Purchasing Power Parity

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[@spectrenm1863]

You are really amazing , that is exactly what I wanted to know.. Many thanks indeed .

[@joshuairving2426]

Hi Ronald, I currently use the formula for PPP:- Forward Rate (ESo) = Spot Rate (So) x ((1 + US Inflation Rate)/(1 + UK Inflation Rate))... Presuming the cable rate is GBP/USD If I was to calculate the Forward Rate (ESo) given the inflation rate at a quarter point of the year, would the formula be; Forward Rate (ESo) = Spot Rate (So) x ((1 + US Quarter Inflation Rate)/(1 + UK Quarter Inflation Rate))^0.25? Likewise if it was for a 3 year period; Forward Rate (ESo) = Spot Rate (So) x ((1 + US Inflation Rate)/(1 + UK Inflation Rate))^3? Is this correct? Many thanks

[@me3th64]

Why so underrated?

[@linhphan6825]

can you show us how to test PPP with a simple regression model