Engineering Alpha

Engineering Alpha

Forecasting Currency Pairs With the PPP Method in Python

How to Use the PPP Method to Forecast Currencies

Sofien Kaabar, CFA's avatar
Sofien Kaabar, CFA
Mar 24, 2023
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The Purchasing Power Parity is a fundamental forecasting tool that relies on inflation between two countries to forecast the intrinsic value of the currency pair between them. This article presents the PPP method and shows how to use Python to forecast currency pairs using it.

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