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Arguments Against considering Purchasing Power Parity as the best measure for comparison

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ARGUMENTS AGAINST PPP IS THE BEST MEASURE TO COMPARE PRICES AND ECONOMIES Presented By Sandeep Mathew Olickal 07927811 Group # 19
INTRODUCTION TO PPP ,[object Object],[object Object],[object Object],[object Object],[object Object],14-11-2007 PPP is the best measure to compare prices and economies
USES OF PPP ,[object Object],[object Object],14-11-2007 PPP is the best measure to compare prices and economies PPP PPP (percapita)
USERS OF PPP ,[object Object],[object Object],14-11-2007 PPP is the best measure to compare prices and economies Power Generation English Speakers Tsunami Fund
CHARACTERISTICS OF THE BEST MEASURE ,[object Object],[object Object],14-11-2007 PPP is the best measure to compare prices and economies
ANALYSIS : PPP A BEST MEASURE ?? 14-11-2007 PPP is the best measure to compare prices and economies
TO COMPARE PRICES 14-11-2007 PPP is the best measure to compare prices and economies
TO COMPARE PRICES 14-11-2007 PPP is the best measure to compare prices and economies
WHY THIS VARIANCE ? 14-11-2007 PPP is the best measure to compare prices and economies
SENSITIVITY TO “INTERNATIONAL” PRICES 14-11-2007 PPP is the best measure to compare prices and economies Parameters China India X 1 1000 10 X 2 1 1000 P 1 1 10 P 2 5 5 EX I 10005 5100 EX C 1005 5010 S PPP,C = 0.10 S PPP,I = 0.98
COMPARISON OF ECONOMIES 14-11-2007 PPP is the best measure to compare prices and economies GNP Vs GNP (PPP)
COMPARISON OF ECONOMIES ,[object Object],[object Object],[object Object],14-11-2007 PPP is the best measure to compare prices and economies Country 1 Country 2 Relevance Advanced Transition Developed Economy Advanced Transition Lagging Transition Lagging Transition Developed Economy Advanced Transition Advanced Transition
BUILDING A MODEL FOR AN ECONOMY ,[object Object],[object Object],[object Object],[object Object],14-11-2007 PPP is the best measure to compare prices and economies
RANKING BASED ON PPP 14-11-2007 PPP is the best measure to compare prices and economies
CONCLUSION 14-11-2007 PPP is the best measure to compare prices and economies
THANK YOU 14-11-2007 PPP is the best measure to compare prices and economies

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Purchasing Power Parity

  • 1. ARGUMENTS AGAINST PPP IS THE BEST MEASURE TO COMPARE PRICES AND ECONOMIES Presented By Sandeep Mathew Olickal 07927811 Group # 19
  • 2.
  • 3.
  • 4.
  • 5.
  • 6. ANALYSIS : PPP A BEST MEASURE ?? 14-11-2007 PPP is the best measure to compare prices and economies
  • 7. TO COMPARE PRICES 14-11-2007 PPP is the best measure to compare prices and economies
  • 8. TO COMPARE PRICES 14-11-2007 PPP is the best measure to compare prices and economies
  • 9. WHY THIS VARIANCE ? 14-11-2007 PPP is the best measure to compare prices and economies
  • 10. SENSITIVITY TO “INTERNATIONAL” PRICES 14-11-2007 PPP is the best measure to compare prices and economies Parameters China India X 1 1000 10 X 2 1 1000 P 1 1 10 P 2 5 5 EX I 10005 5100 EX C 1005 5010 S PPP,C = 0.10 S PPP,I = 0.98
  • 11. COMPARISON OF ECONOMIES 14-11-2007 PPP is the best measure to compare prices and economies GNP Vs GNP (PPP)
  • 12.
  • 13.
  • 14. RANKING BASED ON PPP 14-11-2007 PPP is the best measure to compare prices and economies
  • 15. CONCLUSION 14-11-2007 PPP is the best measure to compare prices and economies
  • 16. THANK YOU 14-11-2007 PPP is the best measure to compare prices and economies