Top countries by GDP both nominal and PPP in 2015.
So, can /int/ explain GDP PPP to me?
Say WashingMachinia, a hypothetical country, produces nothing but 100 washing machines a year. In Washingmachinia money, this is worth 100 Capsules (the local currency of Washingmachinia), which is equal to $400. So it has a nominal GDP of $400.
However in America, those 100 washing machines would cost $800. So the GDP PPP is $800.
"Last year, as we were doing the hard work of imposing sanctions along with our allies, some suggested that Mr. Putin's aggression was a masterful display of strategy and strength,” Obama said.
Maybe becouse you kill my ecomonic?
Okay guys here's the simple nominal versus PPP answer to settle the perrenial debate.
Lots of fluctuations
Exchange rates are generally not free floating
Doesn't measure living standards well
Accurate for trade measurement and financial services
Measures living standards well
Inaccurate for trade and financial services
Overestimates some countries economic power (power being ability to utilize the economy to make other countries do what you want)
The best measurement:
An IMF based measurement of the nominal GDP value in terms of the six major currencies averaged over 5 years. This averages the best traits of both PPP and nominal.