EXCHANGE RATES AND PURCHASING POWER PARITY: A COMPARATIVE STUDY OF CIS REGION COUNTRIES AND MAJOR GLOBAL ECONOMIES WITH A FOCUS ON KAZAKHSTAN

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Date

2023

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Volume Title

Publisher

Nazarbayev University Graduate School of Business

Abstract

The relationship between exchange rates and Purchasing Power Parity (PPP) is one of the important factors to consider in international economics since it can influence trade relationships, economic policies, and global financial stability. On the other hand, PPP, a foundational theory of economics, states that in the long run, the ratio of two currencies' price levels should be reflected in the exchange rate between them (Arize et al., 2015b). Changes in exchange rates may have a considerable effect on the economic health of a country since they can influence the competitiveness of exports, inflation, and capital flows. Consequently, it is of the utmost importance for governments, businesses, and investors to understand the behavior and determinants of exchange rates, as it has a direct impact on the cost of imports and exports (Brillembourg, 1977).

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Type of access: Open

Citation

Abenova, A., Amantay, D. (2023). EXCHANGE RATES AND PURCHASING POWER PARITY: A Comparative Study of CIS Region Countries and Major Global Economies with a Focus on Kazakhstan. Nazarbayev University Graduate School of Business