what is... (2 Viewers)

[*Pooja*]

whats purchasing power parity. i have all these weird definition and none make sense 2 me.

 

[AGB]

it basically measures how much one unit of currency in one country can buy i.e. the purchasing power, and then it compares this to the purchasing power of other currencies.....does this help??

 

[pigs_can_fly]

u won't need to know any definitions. just say that's its a more accurate measure of GDP and GDP per capita than the exchange rate method. think about it this way, chinese yuan is worth jack when compared to US dollar, but in china, one yuan could prbly buy alot more necessities than one us dollar. basically, purchasing power parity measurements take this into account when making comparisons

 

[schmackers]

think of it like this:
one rupiah might be able to buy say, 2 big macs in India, but one US dollar would only be able to buy say, half of a big mac in America, even thought a US dollar is worth a lot more than a rupiah. Its all about the purchasing power.

 

[santaslayer]

the difference in purchasing power of a currency in different economies......lol

 

[aditya]

lol sshmackers u idiot... far out that was the stuupiest thing ive ever heard... get out of here....


2 big macs for 4 cents.... good work...pfft

 

[schmackers]

errr... those figures were just made up for the sake of argument. it's to prove a point. and the big mac idea wasn't mine- it was in a ross gittins article i read.

 

[ameh]

Originally posted by aditya
lol sshmackers u idiot... far out that was the stuupiest thing ive ever heard... get out of here....


2 big macs for 4 cents.... good work...pfft

i dont see your 2cents

 

[jay9nine]

i have jus given up UNDERSTANDING ecos, they ask me for the answer i giver them the definition, who cares wat it means!! if its out of the text book it s write

 

[*Pooja*]

i get it now!!!!

thanks for the truly curry example. i never knew ross gittins wrote stuff related 2 india...neways i get it..thanks pplz