International Exchange rate and PPP?

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What is the best way to account for yearly changes in exchange and PPP rate when looking at prices across time and countries? Should I take a four year average or use a base year to miminize exchange rate fluctuations? Which way is better and why?

International Exchange rate and PPP?

Four year averages over a period 30/ 40 years could help. There will always be a need for a base year for comparison purposes. But why re-invent the wheel. Search for data at the WorldBank/ IMF website or the look through the various weekly issues of the ECONOMIST or the other publications of the Economist group.



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