Purchasing power parity (PPP) is a measure of the price of specific goods in different countries and is used to compare the absolute purchasing power of the countries currencies. PPP is a popular macroeconomic analysis metric used to compare economic productivity and standards of living between countries. It is an economic theory that compares different countries currencies through a "basket of goods" approach. That is, PPP is the exchange rate at which one nations currency would be converted into another to purchase the same and same amounts of a large group of products. The calculation of the PPP is made through a basket of goods that contains a "final product list . The PPP method is used as an alternative to correct for possible statistical bias.
It is important to note that PPP is not related to the Paycheck Protection Program (PPP), which is an SBA-backed loan that helps businesses keep their workforce employed during the COVID-19 crisis.
