PURCHASING POWER PARITY AND CURRENCY CAPACITY: A COMPARATIVE ANALYSIS OF APPROACHES TO THE ASSESSMENT OF COMPETITIVENESS AND EQUIVALENCE OF INTERNATIONAL TRADE

Constantine Nikolaevich Shadrov, graduate of Management Department of the International University of Nature, Society and Man “Dubna”, member of Scientific school of sustainable development

Abstract

The article discusses two methods for the analysis of exchanges between socio-economic systems: a method based on the theory of purchasing power parity exchange and the method of the currency capacity. The possibilities of using them to assess the competitiveness of the different countries’ economies is discussed. Based on this analysis conclusions on the adequacy of these methods in relation to the aforesaid problem are made.

KEYWORDS: competitiveness, international exchange, equivalent exchange, use value, purchasing power parity, currency capacity.

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