What is purchasing power parity?

What is purchasing power parity?

Aslam u alaikum dear What is purchasing power parity Iqtisadi pedawari salahiyat aur mumalik ke darmiyan miyaar zindagi ka mawazna karne ke liye aik maqbool macro economic tajzia metric qowat khareed ki barabari ( ppp ) hai. ppp aik muashi nazriya hai jo mukhtalif mumalik ki krnsyon ka mawazna" samaan ki tokri" ke zariye karta hai, cares act ke zariye banaye gaye pay check protection programme ke sath uljan mein nah parrin. prchizng power parity ( ppp ) aik maqbool metric hai jisay macro economic tajzia car istemaal karte hain. mukhtalif mumalik ki krnsyon ka mawazna" samaan ki tokri" ke zariye karta hai. qowat khareed ki barabari ( ppp ) mahireen iqtisadiat ko mulkon ke darmiyan muashi pedawari aur miyaar zindagi ka mawazna karne ki ijazat deti hai. kuch mumalik PPP ki akkaasi karne ke liye apni majmoi gharelo pedawar ( jee d pi ) ke adaad o shumaar ko adjust karte hain . Comparing nation purchasing power parity Tamam mumalik mein qeematon ka bamani mawazna karne ke liye, samaan aur khidmaat ki aik wasee range par ghhor kya jana chahiye. taham, yeh one two one mawazna haasil karna mushkil hai kyunkay adaad o shumaar ki sara sar miqdaar jisay jama karna zaroori hai aur mawazna ki paicheedgi jis ko khenchna zaroori hai. is mawazna ko aasaan bananay mein madad ke liye, university of pinsalwania aur aqwam mutahidda ne 1968 mein bain al aqwami mawazna programme ( icp ) ke qiyam ke liye afwaj mein shamoliat ikhtiyar ki. 2 is programme ke sath, icp ke zareya tayyar kardah ppps ke paas duniya bhar mein qeematon ke surway ki bunyaad hai jo senkron mukhtalif ashya aur khidmaat ki qeematon ka mawazna karti hai. yeh programme bain al aqwami muashi mahireen ko aalmi pedawari salahiyat aur numoo ka andaza laganay mein madad karta hai. 3 har chand saal baad world bank aik report jari karta hai jis mein PPP aur Amrici dollar ke lehaaz se mukhtalif mumalik ki pedawari salahiyat aur numoo ka mawazna kya jata hai. 4 bain al aqwami maliyati fund ( imf ) aur iqtisadi taawun aur taraqqi ki tanzeem ( oecd ) dono pishin goyyan karne aur iqtisadi policy ki sifarish karne ke liye ppp matrix par mabni wazan ka istemaal karte hain. 5 tajweez kardah muashi policia maliyati mandiyon par fori qaleel mudti assar daal sakti hain . Drawback of purchasing power parity 1986 se, the economist ne bohat se mumalik mein mcdonald' s corp.' s ( mcd ) big make himbrgr ki qeemat ko achi terhan se track kya hai. un ke mutalea ka nateeja mashhoor" big make index" mein hai." burgernomics" mein - 2003 ka aik mumtaz maqalah jo big make index aur ppp ki khoj karta hai - musanifeen Michael are pako aur paterasia s ne yeh wazahat karne ke liye darj zail awamil ka hawala diya ke qowat khareed ki barabari ka nazriya kyun haqeeqat ka acha akkaas nahi hai. 6

Assalamu Alaikum Dosto!

Purchasing Power Parity (PPP)

Forex market mein trading ki kamyabi, sab se successful trades ko sahi tarah se determine karne ki salahiyat par mabni hai. Yahan par currency movement ko sahi tarah se forecast karne ke tariqay ka istemal kiya jata hai. Lekin, durust forecasts banane ke liye, market ki technical analysis ke ilawa fundamental factors ko samajhna aur analyze karne ki zaroorat hai, jo ke currency rates ko asar andaz karte hain. Inme se sab se ahem factor woh hain jo mulk ki global financial market mein position ko darust karti hain aur lambi dor mein national currency rate ko asar andaz karte hain.

"Purchasing power parity wo economic indicator hai jo countries ki different economies ki state ko sab se sahi taur par characterize karta hai. Iski madad se alag alag national currencies ki "value" ko compare kiya ja sakta hai aur ye seedhe prices se mutasir hoti hai: agar prices barh jati hain, to purchasing power kam ho jata hai (aur reverse bhi)."

Purchasing power parity ka concept exchange rates tay karne ki theory ke tor par paida hua hai. Iski aksar wajah Swedish economist aur Stockholm University ke professor Gustav Cassel ko kaha jata hai. Cassel ki theory ka maqsad practical tha. Us dor mein, jab World War I khatam hone ke baad nai dunia ki financial system shuru hui aur gold standard ka khatma hua, tab alag mulkon ke darmiyan currencies ke "sahi" ratios ki zaroorat thi, bina precious metals ke exchange ke.
Cassel ki asal theory ke mutabiq, free trade conditions mein currencies ke exchange rate ka value unke purchasing power ke ratio se decide hota hai. Is definition ke mutabiq, currencies ke exchange rate ka value us mulk mein depend karta hai jahan se woh currency issue hoti hai, aur is ratio ko purchasing power parities kehte hain.
Cassel ne yeh bhi kaha tha ke agar free trade conditions ko tora jaye, to exchange rate purchasing power parities se deviate ho sakta hai, lekin yeh deviation zyada significant nahi hoga aur temporary hoga.
Yeh version, jo absolute purchasing power parity kehlata hai, chronologically theory ki sab se pehli version hai. Isne jab se scientific circulation mein aya hai, is par bohot si debates hui hain, lekin yehi basis hai jis par purchasing power parity ka concept international comparisons ki practice mein istemal hota hai.
Purchasing power parity theory mein kuch currencies aur goods shamil ho sakti hain. Basic taur par, yeh ek currency ki quantity hai, jo ke doosri currency mein express ki gayi hai, aur jo same product ya service dono markets mein kharidne ke liye zaroorat hoti hai. Yeh theory ye kehti hai ke agar kisi cheez ki kimat ek common currency mein di gayi hai, to woh duniya bhar mein kahin bhi same price par available hogi.
Lekin purchasing power parity khud ek working theory nahi ho sakti, kyun ke isme logistics aur transaction costs ki value nahi hai. Haqiqatan mein, goods ko move karna zaroori hai, jo ke unki price ko barha deta hai. Yehi forex mein bhi hota hai, jahan trade costs, spreads, commissions, etc. hote hain. Asal zindagi mein, goods ko move karna zaroori hai, jo ke unki price ko barha deta hai. Yehi forex mein bhi hota hai, jahan trade costs, spreads, commissions, etc. hote hain. Situational depend karta hai ke goods ki basket, prices, taxes, tariffs, etc. in sab cheezon se exchange rate mein more realistic price create hoti hai relative to purchasing power parity.
Purchasing power parity model ki functioning tabhi mumkin hai jab goods aur currency freely move hoti hain, lekin amal mein exchange rates usually parity se kafi deviate karte hain. Aur, ek ya doosri currency ki demand exchange par kai aur factors par depend karti hai.

Purchasing Power Parity Examples:

• Kai international organizations jaise ke World Bank, Eurostat, alag alag countries ke liye economic indicators ko ek hi currency (aam taur par U.S. dollars mein) mein publish karte hain, purchasing power parity par based exchange rates ke istemal se.
• Aik mashhoor example purchasing power parities ka hai "Big Mac Index," jo ke English weekly The Economist regularly calculate karta hai. Yeh index "Big Mac" ke prices par based hai, jo ke McDonald's restaurants mein different countries mein milti hain, aur yeh ek alternative exchange rate provide karta hai.
• Ek aur kam mashhoor index "iPod index" hai, jo ke Australian investment bank Commonwealth Securities ke dwara calculate kiya jata hai. Is index mein popular Apple MP3 player ke prices par based exchange rates provide kiye jate hain.

Law Of One Price Kya Hai?

Law of one price ke mutabiq, competitive markets mein, transportation costs aur official trade barriers (jaise ke duties) ke na hone par, agar kisi product ki price ek currency mein di gayi hai, to wohi price doosre countries mein bhi same currency mein express ki gayi price mein honi chahiye.
Jab trade unhindered aur cost-free hota hai, to wohi goods ko same relative prices par bechna chahiye chahe woh kahin bhi beche jayen. Hum yeh principle yaad karte hain kyun ke yeh national goods ki prices aur exchange rates ke darmiyan ek link banata hai.
Lekin purchasing power parity aur law of one price ke darmiyan ek farq hai: law of one price individual goods ke liye apply hota hai, jabke purchasing power parity consumer basket ke sab goods ke prices ke liye apply hota hai. Agar law of one price har product ke liye sahi hai, to purchasing power parity automatically comply hona chahiye jab tak different countries ke price levels calculate karne ke liye use hone wale consumer baskets same rehte hain.
Purchasing power parity theory ke supporters ke mutabiq, iski validity (khaas kar long term mein) ye nahi demand karta ke law of one price precisely followed ho. Unka kehna hai ke agar har commodity ke liye one price law follow nahi hota, to bhi prices aur exchange rates purchasing power parity ke determined ratio se zyada deviate nahi karna chahiye. Jab goods aur services temporarily kisi country mein aur sasti ho jati hain, to us country ki currency aur uske products ki demand kam hoti hai, jo exchange rate aur domestic prices ko purchasing power parity ke level par wapas lekar aata hai.

Law Of One Price Example:
To phir law of one price haqiqatan mein zindagi mein kaise manifest hota hai? Yeh currency rates, yaani forex mein kaise asar andaz hota hai?
Maan lijiye ek hypothetical situation ko lekar chalte hain: agar hum ek product ko lekar sochen, jaise ke ek loaf of bread. Maan lo, India mein ek loaf of bread ki price 30 rupees hai, aur United States mein wahi loaf 2 dollars mein bechta hai. Iska matlab dollar rate to rupee ke liye 15 rupees per dollar hona chahiye. Lekin agar real exchange rate 25 rupees/1 dollar hai, toh koi India se bread khareed kar use United States mein 2 dollars mein bech kar real exchange rate par do dollars ko 50 rupees mein convert kar sakta hai. Is tarah, har loaf ke liye 20 rupees ka return mil sakta hai.
Forex education aur law ke mutabiq, United States mein bread ki price kam ho jayegi, jabke India mein badh jayegi. Iska matlab dollar-rupee exchange rate kam ho jayega. End mein kya hoga? Bahut mumkin hai ke din ke end mein hum equilibrium aur ek naye rate dekhein.

Absolute Purchasing Power Parity (PPP)

Absolute purchasing power parity yeh kehti hai ke agar aap ek basket of goods ko ek country mein lete hain aur uski price ko compare karte hain ek identical basket of goods ke sath doosre country mein, use ek hi currency mein convert karte hue, to dono baskets ki prices same hogi. Yani agar country A ki price level 50% barh gayi aur country B ki price level waisi hi rahi, to country A ki currency ki value (country B ki currency ke comparison mein) 50% kam honi chahiye. Agar A ki price level 60% aur B ki 25% badhti hai, to currency A ki value currency B ke comparison mein sirf 28% kam hogi.
Absolute purchasing power parity theory ke mutabiq, agar domestic prices ka level foreign prices ke level ke mukable mein barh jata hai, to national currency foreign currency ke mukable mein proportionately depreciate hogi.
Absolute purchasing power parity theory ki value yeh hai ke isne national currency ki kamzori ka ek sab se ahem asal sabab zahir kiya hai - mulk mein domestic inflation, aur is tarah, exchange rate ko stabilize karne ka ek tareeqa bhi pesh kiya hai - inflation ko control mein rakhna aur mulk mein national currency ki purchasing power ko mazboot karna.
Absolute purchasing power parity theory ke drawbacks:

• Identical Baskets ki Difficulty: Alag-alag countries mein bechne wale homogeneous goods ki identical baskets banana aur inki prices ko measure karna bohot mushkil hai.
• Unrealistic Assumptions: Is theory ke istemal ke problems is theory ke unrealistic assumptions se judi hain. Amal mein, price equalization ke process ko trade barriers, transportation, aur transaction costs ki complexity, sath hi yeh bhi hai ke sab goods tradable nahi hote, sab currencies convertible nahi hote, etc. se complicated banata hai.

Relative Purchasing Power Parity Kya Hai?

Relative purchasing power parity yeh kehti hai ke exchange rates mein tabdiliyan do mulkon mein relative price levels mein hone wale tabdiliyon ke mutabiq hogi. Relative purchasing power parity ki bunyad yeh hai ke diye gaye muddat mein exchange rate mein hone wali tabdiliyan wohi hogi jo do mulkon mein price levels mein hone wali tabdiliyon ke mutabiq hogi.
Agar kisi mulk mein inflation dusre mulk se zyada hai, to baqi conditions same hote hue, national currency lambi dor mein depreciate honi chahiye. Asal mein, relative parity par based exchange rate ko predict karna current rate ko future period ke liye inflation rates ke mutabiq extrapolate karna hota hai.
Relative purchasing power parity theory par based rates, jo ke current market rates se deviate karte hain, se yeh idea utpann hota hai ke currencies parity se deviate ho jati hain, unhe "overvalued" ya "undervalued" kaha jata hai. Ek currency overvalued hoti hai agar uska real exchange rate purchasing power parities ke mutabiq tezi se barh raha hai, aur agar tezi se kam barh raha hai to usay underestimated kaha jata hai. Is point of view se exchange rate ki assessment ka serious practical value hota hai: national currency ki overvaluation, purchasing power parity ke itne hi tentative indicator ko consider karte hue bhi, export growth ko negatively affect karne wala factor maana jata hai.
To, agar fixed exchange rate ho, to mulk ko currency ko artificially devalue karna padega takay trade ko waisi hi level par wapas la sake. Floating rate mein, jo ke aksar developed countries mein hota hai, investors ek deficit wale mulk mein invest karna continue kar sakte hain, lekin sirf high-interest rates ke compensation ke sath. Aur zyada high-interest rates inflation ko kisi na kisi tarah lead karte hain. Sooner or later, pehle mulk mein jo goods ki basket hai, woh doosre mulk mein waisi hi price par pahunchegi.
Yehi scenario purchasing power parity se murad hai, aur, pehli nazar mein, yehan sab kuch mantuq lagta hai. Har saal, The Economist magazine "Big Mac" ke price comparative data publish karta hai, jo 80 countries mein burger ki price parity ke liye hone wale exchange rates ko dollars mein deta hai. Yeh study bhi currencies ke rates ko pound, euro, yen, aur yuan ke sath compare karti hai.
Yeh point yahan hai ke agar kisi country mein "Big Mac" zyada mehnga hai compared to others, to us country ki currency overvalued hai, agar kam hai to ye undervalued hai. Kaafi baar, overvalued currency agle saal gir jati hai, jabke undervalued wali badh jati hai. Organizations jaise ke World Bank aur doosre large banks bhi purchasing power parity ko calculate karte hain. Yeh parameter European Commission (price convergence ke term mein) ke dwara bhi monitor hota hai.

Simple Relative Purchasing Power Parity Example
Chaliye ek example dekhein, taake sab clear ho. Maan lo, Country B ki total price level base period se period "1" tak same rehti hai, jabke Country A ki total price level 50 percent barh jati hai, to relative purchasing power parity theory ke mutabiq, period "1" mein Country A ki currency ki value Country B ki currency ke comparison mein 50 percent se barhni chahiye (yani, Country A ki currency ko 50 percent depreciate hona chahiye) compared to base period.
Ye baat yaad rakhein ke jab absolute purchasing power parity theory exchange rate ko predict karne mein sahi hai, to relative purchasing power parity theory bhi sahi hoti hai, lekin jab relative purchasing power parity theory sahi hoti hai, to yeh nahi ke absolute purchasing power parity theory bhi sahi hogi. For example, agar capital flows, transportation costs, aur international trade ki free flow mein kisi bhi tabdili hoti hai, to absolute purchasing power parity theory chhod di jati hai, lekin relative purchasing power parity theory us samay galat conclusions nikal sakti hai.

Purchasing Power Parity Ke Drawbacks

Purchasing power parity theory ka sab se bada masla yeh hai ke yeh parity economists ne invent ki hai. Yeh balance haqiqatan mein haasil nahi ho sakta. Shuruwat karte hain yeh ke bohot se countries mein kuch sectors aur goods ke prices ko objective factors ke bajaye low level par rakha jata hai. Jaise ke United States mein grain crops ki production hamesha Japan se sasti hogi fertile soil aur behtar mausam ke wajah se. Asia ke emerging markets, jisme China bhi shaamil hai, cheap labor costs ka faida uthati hain, khaas kar clothing production ke context mein. In "irregularities" ko smoothen karne ke liye kai saal lagenge (agar yeh mumkin hai). Automobile industry ko USA aur Germany ke beech aur exchange rates ke beech correlation nikalna bohot mushkil hoga. Purchasing power parity theory ke mutabiq, Germany mein export growth nahi honi chahiye thi, lekin yeh hua.
Doosra: humare paas saaf measurement units bhi nahi hain. Yeh "basket of goods" kya hai? Average Japanese firm ya household ke liye yeh ek hota hai, jabke Britain, France, aur United States ke liye yeh doosra. Aisi ek basket ko "common denominator" par laane ka koshish karna nakam ho jayega: pehle toh kai factors ko neglect karna padega (jaise ke goods ki quality mein farq), aur doosra, data hamesha outdated hoga. For example, US mein haal hi mein handmade goods ki demand badh gayi hai, chahe woh soap ho ya clothes, aur aise goods mehngi hongi. Japan mein local rice American ya kisi aur rice se behtar consider hota hai. Aise quality factors relative value ke liye mukhya hote hain.
Ek aur point yeh hai ke kayi services sirf local level par provide hoti hain aur unhe national borders ke across nahi transfer kiya ja sakta. General hospitality, beauty services, aur repair crews sab local level par hote hain. Wahi services kisi country ke economy mein huge share bana lete hain - United States mein, for example, 65 percent. Dollar doosre currencies ke mukable ya toh giray ya barha, lekin in services ke payment aur price par iska bilkul koi asar nahi hota.
Purchasing power parity ka qanoon hatta ke ek country ke conditions mein bhi nahi kaam karta, toh kya kehna forex ke international currency market mein, jahan trader planet ke andar hi kamai karta hai. Is theory ki relative kamzori yeh hai ke isne free trade in goods bina tariffs, quotas, aur taxes ke assume ki hai. Isliye agar US new import duties announce karta hai, to domestically produced goods ki prices badhengi. Lekin yeh badheshah dollar ki purchasing power tables mein nahi dikhai degi.
Ek aur disadvantage yeh hai ke iska application ek limited standard set of goods ke liye hota hai, lekin services ke liye nahi jisme significant price differences hote hain. Aur currency rates ko affect karne wale factors mein se sirf inflation aur interest rates ki difference nahi hoti, balki isme press releases aur economic reports, asset markets, political developments, aur power balance bhi shaamil hote hain. 90s tak, purchasing power parity theory ki effectiveness ki thodi practical evidence thi.
Purchasing power parity theory ko sirf fundamental long-term analysis mein istemal karna chahiye. End mein, economic forces currencies ki purchasing power ko balance karenge, lekin yeh kaafi saal tak ho sakta hai. Usually, time horizon five to ten years hota hai.

Purchasing Power Parity Theory Aur Uska International Business Mein Kirdar

Purchasing power parity ko conversion factor ke taur par istemal karna duniya ki geo-economic tasveer ko kafi badal deta hai, developed aur developing countries ko qareeb laata hai aur unki global GDP mein unka hissa barhata hai.
Purchasing power parity ke istemal se GDP ke gap ko kam hone ke reasons mein shamil ho sakti hain, yeh woh differences ko eliminate karta hai jo kuch goods aur services ke groups ke liye hoti hain aur ek statistics fact hai. Is tarah, nominal exchange rates par based estimates ke mukable, purchasing power parities se low-aur middle-income countries ke GDP ko kafi zyada badhaya ja sakta hai, jabke high-income countries ke liye thoda sa kam hota hai. Developing countries ke liye, purchasing power parities ka istemal inko duniya ke GDP mein unka asli hissa aur dono groups ke darmiyan kisi bhi economic comparison mein ek zyada haqiqi tasveer hasil karne mein madad karta hai.
Is ke bawajood, maujood mushkilein aur yeh ke GDP national accounts ke system ka integral indicator hai, alag-alag countries aur regions ke liye is indicator ki values ko purchasing power parity of currencies par based calculate karna (exchange rate ke bajaye), inke economic size, economic potential, aur power ke bare mein zyada sahi kheyal hasil karne mein madad deti hai.

What is purchasing power parity?

"Purchasing Power Parity" (PPP) ek economic concept hai jo currency exchange rates aur goods ke prices ke darmiyan ek relationship ko describe karta hai. Iska basic idea ye hai ke do alag alag currencies ke exchange rate mein tabdeelat hone par bhi, ek specific basket of goods ki cost should remain constant.

Is concept ko samajhne ke liye, ek example consider karte hain: Agar ek certain basket of goods in the United States mein $100 ka hai aur ek similar basket of goods in Pakistan mein 5,000 Pakistani Rupees ka hai, toh purchasing power parity ke mutabiq, exchange rate ideally 1 US Dollar = 50 Pakistani Rupees hona chahiye, taki dono countries mein woh basket of goods ke cost barabar rahe.

Yadi actual exchange rate is theoretical PPP rate se zyada ho, toh kahe ja sakta hai ke ek country ki currency overvalued hai, aur agar actual exchange rate kam ho toh woh undervalued hai.

Lekin, real world mein PPP always perfectly nahi hota, kyun ki factors jaise transportation costs, trade barriers, taxes, aur other economic factors bhi influence karte hain. Iske bawajood, PPP ek important economic concept hai aur analysts iska istemal karte hain to assess whether a currency is overvalued or undervalued, and thus, to make predictions about future exchange rate movements
Purchasing Power Parity (Khareedari Quwwat Barabari):

"Purchasing Power Parity" (PPP) ek economic concept hai jo currency exchange rates aur maal-o-daulat ke daam ke darmiyan ek ta'alluq ko bayan karta hai. Iska bunyadi tasawwur ye hai ke do mukhtalif currencies ke exchange rate mein tabdeelat hone par bhi, ek khaas qisam ki chezein ke daam barabar rehna chahiye.

Tajaweez (Idea): Is concept ko samajhne ke liye, ek misaal lete hain: Agar ek khaas qisam ki chezein United States mein $100 ki hain aur ek mawafiq qisam ki chezein Pakistan mein 5,000 Pakistani Rupees ki hain, toh purchasing power parity ke mutabiq, exchange rate ideal taur par 1 US Dollar = 50 Pakistani Rupees hona chahiye, taki dono countries mein woh chezein ke daam barabar rahe.

Haqeeqat (Reality): Haqiqatan mein PPP hamesha perfect nahi hota, kyun ki factors jaise transportation costs, trade barriers, taxes, aur doosre arthik maamlat bhi is par asar daal sakte hain. Iske bawajood, PPP ek ahem economic concept hai aur analysts iska istemal karte hain taa ke woh yeh maloom kar sakein ke kya kisi currency ki keemat zyada hai ya kam, aur iske zariye woh future exchange rates ke bare mein peshgoyiyan kar sakein.

-:Forex me Purchasing Power Parity:-

"Purchasing Power Parity" (PPP) ek maaliyat ka nazariya hai jo antararzi maaliyat aur maaliyat mein istemaal hota hai, jisme Forex (foreign exchange) market ke hawale se bhi istemal hota hai. PPP ke mool siddhant mein yeh khyal hai ke lambay arsay mein, do currencyon ke darmiyan exchange rates un rates ki taraf badhte hain jo kisi bhi do mulkon mein ek jaisi maal aur khidmaton ki tokri ke daaman ko barabar karti hain.
Dusre alfaz mein, PPP yeh sujhata hai ke exchange rates aise ho jayein ke ek aam maal aur khidmaton ki tokri ke daaman ko ek aise currency mein bayan karte waqt uski keemat barabar ho. Yeh concept yeh batata hai ke kya kisi currency ki keemat zyada ya kam hai agar mukhtalif mulkon mein maal aur khidmaton ki keematon ko mawafiq currency mein bayan kiya jaye.



-:Forex me Purchasing Power Parity:-

PPP ke do main qisam hain:

1. Absolute Purchasing Power Parity (APPP): Yeh kehta hai ke do currencyon ke darmiyan exchange rate aisa ho ke ek aise currency mein ek tokri maal ki keemat dono mulkon mein barabar ho.
2. Relative Purchasing Power Parity (RPPP): Yeh PPP ka zyada istemaal hone wala hai aur yeh sujhata hai ke exchange rates ke tabdeel hone ki dar, do mulkon ke darmiyan mahangi ka farq barabar ho.

Yeh yaad rakhna zaroori hai ke jabke PPP nazariya mein theory mein faydahmand hai, amliyat mein iske kuch hadood hain. Masail jaise ke muamalat ki lagat, transport ki lagat, aur ghair-mubadil maal isse mukhtalif mulkon mein PPP se bhatakne ka sabab ban sakte hain. Iske alawa, mazeed maali aur maaliyat ke factors jaise ke soudi dar, idariyat, aur market ki jazbat bhi asli dunia mein exchange rates tay karnay mein aham kirdar ada karte hain.

Traders aur investors PPP ko currency harkat ko tajwez aur peish karnay mein ek se zyada factors mein se aik samajhte hain, lekin yeh exchange rates tay karnay ka yeh ekmatra tareeqa nahi hai.

Title: "Istemal Karne Wala: Samajhain Kharidari Ki Taqat Barabari"

Istemal karne wala, ya user, aik shakhs hai jo kisi mal o mulk ko istemal karta hai. Ye istemal kisi bhi cheez ka ho sakta hai, chahe woh kisi product ka istemal ho ya kisi mulk ki sair ka tareeqa. Is article mein hum aik aham mazmon par baat karenge jo kharidari ki taqat ko samajhne mein madadgar hota hai - "Purchasing Power Parity" ya Kharidari Ki Barabari.

Purchasing Power Parity (PPP) ek aisi muddat hai jo mukhtalif mulkon mein mukhtalif currencies ke darmiyan mal-o-dawat ki qeemat ko barabar karne mein madad karta hai. Iski asal maqsad ye hai ke aik mulk mein kisi cheez ki keemat ko doosre mulk ke sath mawafiq banaya ja sake.

Purchasing Power Parity ko samajhne ke liye, humein sab se pehle samajhna hoga ke har mulk apni currency ke zariye mal-o-dawat ko nisbatan keemat deta hai. Har mulk ki currency ki qeemat mulk ki arthi halat, siasati hawale aur uske muasharti or saqaafati fitrat par mabni hoti hai.

Agar hum kisi mal o mulk ki keemat ko sirf uski currency ke zariye dekhen toh ye galatfehmi ho sakti hai, kyun ke har currency ki qeemat mukhtalif asoolon aur maqasid par mabni hoti hai. Is liye, PPP aik formula hai jo mal-o-dawat ki barabari ka andaza lagane mein madad karta hai.

PPP ko samajhne ke liye, humein ek misal par gaur karna hoga. Maan lijiye aap ne ek mobile phone ka muqabla karne ka irada kiya hai aur aap ne dono mulkon mein mojood mobile phones ki keemat ko dekha hai. Agar aap sirf currencies ki keemat par amal karte hain, toh aapko lag sakta hai ke dono mulk mein mobile phones ki keemat mukhtalif hai.

Lekin, agar aap PPP ka tajurba karte hain, toh aap dekhein ge ke mal-o-dawat ki barabari ban jati hai. Yani ke dono mulk mein mobile phones ki asal keemat mukhtalif nahi hoti, jab ke currency ki keemat mukhtalif hoti hai.

Is tarah, PPP hamain ye batata hai ke kisi bhi mal o mulk ki keemat ko sirf uski currency ke adhar par na dekha jaye. Is se ye bhi maloom hota hai ke kisi mulk mein aik currency ke badalne se mal-o-dawat ki keemat mein kis had tak izafah ho sakta hai.

Purchasing Power Parity ka istemal economists, business professionals, aur policymakers ke liye aham hai. Is se mulk mein hone wale tajaweezat, hukumat ki policies, aur tijarat mein mawafiqat ka andaza lagaya ja sakta hai.

Aakhir mein, istemal karne wala (user) ko mal-o-dawat ki keemat aur tijarat mein barabari ko samajhna zaroori hai takay wo apni kharidari mein behtareen faislay kar sake aur mulk aur dunya ke saath mawafiq tijarat ka hissa ban sake.

What is purchasing power parity?

Purchasing Power Parity

Purchasing Power Parity (PPP) ek economic concept hai jo mukhtalif mulkon ke darmiyan maal-o-dawat ki keemat ko mawafiq banane ka maqam hai. Yeh nazariya kehta hai ke agar mukhtalif mulkon mein ek aik jins ke samaan ki keemat alag hai, to currency exchange rates ko tabdeel kiya ja sakta hai taake dono mulkoun ke darmiyan keemat mawafiq ho. Is nazariye ka maqsad yeh hai ke ek aik quantity ke samaan ko kisi bhi mulk mein khareedne ya bechne mein aane wale kharche mein kisi bhi farq ko compensate kiya jaye.

Purchasing Power Parity ka istemal mulkoun ke darmiyan dollar ya kisi aur currency ki keemat ko tay karnay mein hota hai. Iske zariye, ek mulk ki currency ke value ko doosre mulkoun ke sath mawafiq banaya jata hai. Is tareeqe se, PPP mulkoun ke darmiyan trading aur economic activities mein aasani paida karta hai.

Purchasing Power Parity ko samajhne ke liye, samajhdari se dekha jana chahiye ke har mulk apni currency ko apne internal economic conditions ke mutabiq regulate karta hai. Yeh ek tarah se woh keemat hai jise aik mulk ki currency doosri mulkoun ke sath muqabla karti hai. Ismein mulkoun ke bazaar mein maujood mal-o-dawat ki keemat ka bhi khayal rakha jata hai.

Ek asan taur par samajhne ke liye, maan lo ke ek pizza America mein 10 dollars ka hai aur ek pizza Pakistan mein 800 rupees ki hai. Agar hum exchange rate dekhein toh, agar 1 dollar ke barabar 80 rupees hain, toh dono pizzas ki keemat barabar hai. Lekin agar exchange rate mein farq hai, toh PPP ke mutabiq, currency values ko adjust karna chahiye.

Yeh concept 20th century mein tezi se maqbool hua jab mulkon ke darmiyan trade aur economic activities mein izafa hua. Log samajh gaye ke agar aik mulk mein samaan sasta hai aur doosre mulk mein mehnga, toh log us saste mulk se samaan khareedenge. Lekin agar exchange rate itna bhi mehnga ho ke keemat mein ziada farq aa jaye, toh yeh logon ke liye mushkil ho jata hai.

Isliye, PPP ko samajh kar currency exchange rates ko regulate kiya jata hai taake international trade mein asani ho. Iska maqsad yeh hai ke ek mulk ke log doosre mulkon se samaan khareedne aur bechne mein asani se shamil ho sakein.

Purchasing Power Parity ko calculate karne ke liye kai tareeqay istemal kiye ja sakte hain. Aam taur par, Big Mac Index ko istemal kiya jata hai jisme Big Mac burger ki keemat ko mulkon ke darmiyan muqabla kia jata hai. Yeh index batata hai ke ek mulk ki currency ki keemat kis had tak mawafiq hai.

Ek aur tareeqa hai Real Exchange Rate ka jo nominal exchange rate aur price levels ko combine karta hai. Nominal exchange rate currency values ko asal maqami currency ke sath compare karta hai, jabke Real Exchange Rate inflation ko bhi shamil karta hai.

Is concept ke zariye, mulkon ke darmiyan trading aur economic transactions mein transparency aur asani paida hoti hai. Logon ko maloom chalta hai ke ek currency ki value kyun badal rahi hai aur is se unke liye kya implications hain.

Lekin, yeh zaroori hai ke samjha jaye ke PPP ek idealized concept hai aur real-world situations mein har waqt kamyaab nahi hota. Economic factors, government policies aur doosre elements is par asar dalte hain. Iske bawajood, PPP ek important tool hai jo currency values ko regulate karne mein madadgar hota hai.

Aakhiri taur par, Purchasing Power Parity ek mukhtalif mulkon ke darmiyan economic stability ko barqarar rakhne ka zariya hai. Yeh mulkon ko ek doosre ke sath trading mein asani aur mawafiq banata hai, jo ke global economy ke liye behad zaroori hai.

What is purchasing power parity?

Purchasing Power Parity (PPP) ek maqbul economic concept hai jo exchange rates aur mulk ki mukhtalif currencies ke purchasing power ke darmiyan taalluqat ko samajhne mein madad karta hai. PPP theory ke mutabiq, ek commodity ya basket of goods ka cost, jab ek currency se doosri currency mein translate kiya jata hai, tab dono currencies ke darmiyan hona chahiye.






Yeh concept the economist Gustav Cassel ke dawar 1920s mein shuru kiya gaya tha aur usne ise exchange rates ke mawafiqar currencies ke purchasing power ke sath jodhne ka tajziya karne ke liye pesh kiya tha. PPP theory ke mutabiq, agar exchange rates mawafiqar purchasing power ke sath hote hain, to currencies correctly valued hain.




Purchasing Power Parity ke Key Points:

1. Relative Cost of Goods:
   • PPP theory ke mutabiq, ek currency ki purchasing power doosri currency ke sath relative honi chahiye. Agar ek mulk mein ek specific basket of goods ka cost zyada hai, to uski currency ko doosre currency ke sath zyada hona chahiye.
2. Arbitrage:
   • PPP theory ka ek assumption hai ke market mein arbitrage opportunities nahi hoti, yaani ke traders ek commodity ko low price par kharid kar high price par bech kar profit nahi kar sakte. Agar aisa hota, to currencies ke purchasing power mein taqat ka balance bigad jata.
3. Law of One Price:
   • PPP theory Law of One Price ke sath juda hai, jo ke kehti hai ke ek commodity ki keemat globally ek hi honi chahiye, jab tak keh shipping costs aur trade barriers na hon. Agar kisi mulk mein koi commodity sasta hai, to log use import karenge aur is se uski keemat barh jayegi.
4. Big Mac Index:
   • Ek mashhoor tajziya jise PPP theory ko samajhne ke liye istemal kia jata hai, woh hai Big Mac Index. Is index mein McDonald's Big Mac burger ki keemat ko mukhtalif mulkon mein compare kiya jata hai.

Purchasing Power Parity ke Variations:

1. Absolute PPP:
   • Ismein assumption hai ke exchange rate tabdiliyon ko puri tarah roka ja sakta hai aur ke ek mulk mein aur ek doosre mein keemat mein tabdiliyat na ho.
2. Relative PPP:
   • Ismein assumption hai ke exchange rate tabdiliyon ko puri tarah roka ja sakta hai lekin keemat mein tabdiliyat ho sakti hai.

Purchasing Power Parity theory ko evaluate karte waqt, economists doosre factors jese ke inflation rates, interest rates, aur economic indicators ka bhi tajziya karte hain. Yeh theory sirf ek theoretical concept hai aur real-world markets mein puri tarah se applicable nahi hoti, lekin iska istemal currency values aur exchange rates ko analyze karne mein madad karte hue hota hai.

What is purchasing power parity?






Purchasing Power Parity (PPP) aik maeeshat siddhant hai jo mulkoun ke darmiyan mukhtalif currencies ki qeemat ko mawazna karne ka tariqa hai. Ye nazariya is par mabni hai ke agar kisi bhi mulk mein ek tijarat aur khidmaton ka samundar (basket) ko lekar uske currency ki qeemat barabar ho, toh exchange rate bhi barabar ho ga.





PPP Ka Asal Usool: Qeemat Mein Barabari


PPP ka bunyadi usool yeh hai ke agar kisi mulk mein ek makhsoos samundar ki qeemat, jo mal o asbaab ko shamil karti hai, kisi doosre mulk mein bhi waisi hi ho, toh dono mulkon ke currencies ke darmiyan exchange rate bhi barabar ho ga. Yani ke, agar kisi samundar ke mal o asbaab ki qeemat Lahore mein aur New York mein barabar hai, toh exchange rate bhi barabar ho ga.






Big Mac Index Ka Istemal: Amm Tijarat Mein Application


Is siddhant ko amm tijarat mein laagu karne ke liye, Big Mac Index aik popular tareeqa hai. Is index mein McDonald's ki mashhoor burger, Big Mac, ki qeemat ko mukhtalif mulkon mein mawazna kiya jata hai. Agar burger ki qeemat barabar hai, toh ye PPP ke mutabiq exchange rate ko darust darust darust bayan karta hai.





PPP Ka Istemal Aur Hudood


Lekin, PPP ka istemal har surat mein sahi nahi hota. Real world mein, taxes, tariffs, aur doosre factors ko mad e nazar rakhna zaroori hai jo is siddhant ko puri tarah se amal mein laane mein madad karte hain. Iske bawajood, PPP aik asan tareeqa hai currency values ka mawazna karne ka, lekin ye her hawalay se sahi jawab nahi deta.






Ikhtitami Guzarish: Currency Ki Qeemat Ka Sahi Tajzia


Purchasing Power Parity aik ahem maeeshat siddhant hai jo currency ki qeemat ko samajhne mein madad karta hai. Lekin, iska istemal karne se pehle hamesha yaad rahe ke real-world complexities ko bhi mad e nazar rakha jaye, aur doosre economic factors ko bhi tajzia kiya jaye taake sahi taur par mawazna ho sake.