Briefly comment and point of something interesting on the following post: The 1920s saw the PPP hypothesis come into its own. International price parity is guaranteed by the law of one price, often known as buying power parity. As long as the price is expressed in the same currency, the basket of trade items needs to be the same across nations. This seems to be the reverse in a system with a floating exchange rate because different currencies are linked to a flexible exchange rate. As a result, the exchange rate is promptly modified to reflect changes in national expenses.The fixed exchange rate regime, however, contests this inevitable outcome. The premise or message of the PPP was marginalized after World War II when the fixed exchange rate regime was reinstated. The countries connected to the fixed exchange are to blame for this. The pricing mechanism exhibits a fixed price correlation