Хураангуй:
In this paper, we will find out the impact of average wage and exchange rate on inflation to
Purchasing power parity /PPP/ in Mongolia. We use monthly average wage, exchange rate, and consumer
price index /CPI/ data from the first month of 1999 to the third month of 2020. Before the 2000s, Depending on
Mongolian policy, the average wage was low. As a result, purchasing power became poor too. Since
2000, as Mongolian society has undergone significant changes, the average wage has risen steadily. But
Mongolian currency /tukrig/ is losing power against the USA dollar. Therefore, this thesis will be
conducted on how these changes will affect inflation and Purchasing power.
