One of the key benefits of PPP is that its exchange rates are typically stable over time.docx

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One of the key benefits of PPP is that its exchange rates are typically stable over time.Market rates, on the other hand, are more volatile, and employing them could result in bigchanges in aggregate growth estimates even when individual country growth rates areconsistentDrawbacks of PPP: The biggest one is that PPP is harder to measure than market-based rates. The ICP is a huge statistical undertaking, and new price comparisons areavailable only at infrequent intervals. Methodological questions have also been raised about
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