GDP Purchasing Power Parity 2014

[rcrmj]

Looks like rest of the world is "primitive" except china... but idiocy aside, without PPP, you can't know the extent of economy....

only primitive India takes it seriously, the rest dont do that much```fact

 

[Gauss]

As @Edison Chen said PPP is only to compare the living standards of people in different countries. For all other things we have nominal. Economists knew that the living standards of a nation depended upon its productivity. So they used gross productivity, i.e GDP, to compare the living standards between countries. But then some smart guy said, 'hey, wait a min, people in low income (GDP) countries are not having it that bad. They have lesser money but their things are also cheaper. So they are buying as much as higher income countries even with lower incomes.' So then the economists came up with PPP. If a person in rich country pays a doctor $50 and a person in poor country pays a doctor $5, we say both have the same purchasing power because both were able to pay for a doctor. In PPP calculation we take the money paid by the poor country guy as $50 instead of $5 because it bought the same service the as the rich country guy.
Now people will say that the poor country doctor must not be as good as the rich country doctor but the gap is not as big as people expect. A friend of mine lived many years in Kenya. He says that doctors in Kenya are much better than Pakistani doctors even though Kenya is poorer than Pakistan. This proves that the cheaper things people are buying in poorer countries are not necessarily of lower quality. So PPP serves alright in measuring the living standards.
But for measurement of status in global economy and international power we have nominal ofcourse.

 

[Chinese-Dragon]

Join a strip chub, nigga. I heard they pay well to Asians, just don't forget to shave those hairy armpits every morning.

I'm going to say no for this one.

 

[Aepsilons]

I'm going to say no for this one.

LOL!

 

[Sneaker]

only primitive India takes it seriously, the rest dont do that much```fact

Yeah right. IMF owned by India.... while super dooper china afraid of making it's currency market controlled....

 

[Nike]

As @Edison Chen said PPP is only to compare the living standards of people in different countries. For all other things we have nominal. Economists knew that the living standards of a nation depended upon its productivity. So they used gross productivity, i.e GDP, to compare the living standards between countries. But then some smart guy said, 'hey, wait a min, people in low income (GDP) countries are not having it that bad. They have lesser money but their things are also cheaper. So they are buying as much as higher income countries even with lower incomes.' So then the economists came up with PPP. If a person in rich country pays a doctor $50 and a person in poor country pays a doctor $5, we say both have the same purchasing power because both were able to pay for a doctor. In PPP calculation we take the money paid by the poor country guy as $50 instead of $5 because it bought the same service the as the rich country guy.
Now people will say that the poor country doctor must not be as good as the rich country doctor but the gap is not as big as people expect. A friend of mine lived many years in Kenya. He says that doctors in Kenya are much better than Pakistani doctors even though Kenya is poorer than Pakistan. This proves that the cheaper things people are buying in poorer countries are not necessarily of lower quality. So PPP serves alright in measuring the living standards.
But for measurement of status in global economy and international power we have nominal ofcourse.

Nominally Kenyan population is more richer than Pakistanis, just compare your nominal income percapita

 

[rcrmj]

Yeah right. IMF owned by India.... while super dooper china afraid of making it's currency market controlled....

kid, we are talking about the validity of using PPP to measuring a country's economical strength```I have no problem with any institution either IMF or World Bank's statistics about PPP``get it?

 

[Gauss]

Nominally Kenyan population is more richer than Pakistanis, just compare your nominal income percapita

Kenya is only slightly ahead of Pakistan in gdp per capita. But anyone can be forgiven if they thought Kenya is poorer because blacks look poor even when they are rich.

 

[Jlaw]

The World Factbook

PPP a good, powerful, useless feel good stat to boast if your country is poor.

 

[Sneaker]

kid, we are talking about the validity of using PPP to measuring a country's economical strength```I have no problem with any institution either IMF or World Bank's statistics about PPP``get it?

LOL.. yeah, IMF is in the business of useless statistics... They are just kidding around... Just because your antic policies result in figures not suitable for you doesn't mean the method is wrong, got it??

 

[AndrewJin]

LOL.. yeah, IMF is in the business of useless statistics... They are just kidding around... Just because your antic policies result in figures not suitable for you doesn't mean the method is wrong, got it??

The method is not wrong.
Pls read comments from @Edison Chen

PPP has its reasonability. The exchange rate is volatile in short-term, which could be easily affected by international speculation and government intervention, so from the international comparison of market exchange rates, it could be unstable and even misleading. The economy of developing countries will usually be underestimated comparing to higher income countries.

It also has limitations. It reflects the real living standard, not the overall strength of a country. According to the consensus, GDP per capital based on PPP is reasonable, because it can truly reflect the residents' expenditure on actual quantity of goods and services. It could be misleading to compare the power of a country using PPP, it's meaningless. Also the PPP reflects domestic purchasing power, not the international purchasing power, for example some products and services like medical care can only be consumed locally. Market exchange rates is vulnerable to short-term shocks and often deviate from the influence of the PPP exchange rates, and in the long run, the market exchange rate to the PPP exchange rate convergence speed is slow, and foreign purchasing power of a country depends mainly on market exchange rates, so PPP shouldn't be compared across the world as the competitiveness of each country.

 

[Sneaker]

The method is not wrong.
Pls read comments from @Edison Chen

I know.

 

[rcrmj]

LOL.. yeah, IMF is in the business of useless statistics... They are just kidding around... Just because your antic policies result in figures not suitable for you doesn't mean the method is wrong, got it??

reading comprehension kid, reading comprehension````you Indians are really funny```where did you even get the idea that 'IMF is in the business of useless statistics' ? which post of mine?

 

[Sneaker]

reading comprehension kid, reading comprehension````you Indians are really funny```where did you even get the idea that 'IMF is in the business of useless statistics' ? which post of mine?

Writing fail... go back to your comments and spot where you said.. if you can't spot it, go back to school and learn proper english...

 

[Luca1]

kid, we are talking about the validity of using PPP to measuring a country's economical strength```I have no problem with any institution either IMF or World Bank's statistics about PPP``get it?

India would use PPP figure to beg for a permanent seat in the UN. Of course, they will be laughed out the door....