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October 1999, Vol. 122, No. 10
International price comparisons based on purchasing power parity
Michelle A. Vachris James Thomas
Senior economist, Office of Prices and Living
Conditions, Bureau of Labor Statistics
Because exchange rate movements, in general, tend to be more volatile than changes in national price levels, the purchasing power parity approach provides the proper basis for comparing living standards and examining productivity levels over time.
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International Price Indexes
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International
labor productivity and per capita income.—July
1999.
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