漂亮钞票底纹模板：金钱管理与投资Group “G”.ppt

PURCHASING POWER PARITY Equivalent buying power in different currencies: A way of estimating national income by showing the number of currency units required to buy the same amount of goods and services in another country as one currency unit would buy at home. PURCHASING POWER PARITY Parity (economics), equality of status, or equivalence. In economics and business the concept of parity is applied in a number of ways. One way of comparing standards of living between different countries is to look at gross domestic product (GDP) per head in terms of purchasing power parities (PPPs), which tells us about the cost of living in each country. The two indicators GDP and PPP measures the living standards of a country, can be substantially different. For example, GDP per head in Australia and in the United Kingdom is less than 50 percent of that in Switzerland, but living standards (PPP) in the United Kingdom and Australia are more than 76 percent of the level in Switzerland.| PURCHASING POWER PARITY In its Absolute Version”, the purchasing power of different currencies is equalized for a given basket of goods. In the Relative Version”, the difference in the rate of change in prices at home and abroad - the difference in the inflation rates - is equal to the percentage depreciation or appreciation of the exchange rate. PPP Measurement? Reasons for different measures: The main reasons why different measures do not perfectly reflect standards of living are: PPP numbers can vary with the specific basket of goods used, making it a rough estimate. Differences in quality of goods are hard to measure and thereby reflect in PPP. The PPP exchange-rate calculation is controversial (disagreement) because of the difficulties of finding comparable baskets of goods to compare purchasing power across countries. Global Purchasing Power Income disparities between the developed and the developing countries of the world are apparent in a map showing average purchasing power by region