Purchasing power parity (PPP) compares currencies by using a common basket of goods to show differences in cost of living and standards of living across countries.

Clay Halton was a Business Editor at Investopedia and has been working in the finance publishing field for more than five years. He also writes and edits personal finance content, with a focus on ...

GDP measures the value of goods and services within a nation's borders. GNP measures the value of goods and services by a country's citizens, domestically and abroad. GDP and GNP differ in how they ...