Open Thread, May 5 - 11, 2014

Tenoke

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Previous Open Thread

You know the drill - If it's worth saying, but not worth its own post (even in Discussion), then it goes here.

Notes for future OT posters:

1. Please add the 'open_thread' tag.

2. Check if there is an active Open Thread before posting a new one.

3. Open Threads should start on Monday, and end on Sunday.

4. Open Threads should be posted in Discussion, and not Main.

What is the meaning and use of (total) GDP, adjusted PPP?

I cannot think of a single use for it (unlike nominal total GDP or PPP GDP per capita).

What's the use of nominal total GDP? I would expect the argument for PPP total GDP to be that it's a more accurate measure of the same thing, but I'm not actually seeing what the use is.

1Lumifer12y

Well, PPP has meaning only in the context of multiple currencies, so presumably you're trying to get a handle on some country's nominal GDP expressed in a different currency. This means you need a foreign exchange rate, a multiplier to convert units to different units. At this point things start getting murkier. Sometimes there's a market FX rate. Sometimes there is an official FX rate (and a different black market one). Sometimes there is no reasonable FX rate at all. The PPP rate is just one of the possibilities. Depending on the circumstances it might be more or less appropriate. The crude meaning of GDP converted at PPP rate is "how much stuff at local prices does this country produce/consume".

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Open Thread, May 5 - 11, 2014

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You know the drill - If it's worth saying, but not worth its own post (even in Discussion), then it goes here.

6

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Open Thread, May 5 - 11, 2014

6

You know the drill - If it's worth saying, but not worth its own post (even in Discussion), then it goes here.

6