GDP & PPP

How do we compare the standard of living in two different countries or in the same country over time? Comparisons of per capita Gross Domestic Product are one possible answer but what is GDP? What is nominal GDP? What is real GDP? And how do we compare US GDP of say 14.5 trillion dollars with Thai GDP of 9.5 trillion baht? It's more complicated than it looks! Exchange rates, for example, fluctuate much more rapidly than does the standard of living. Thus, in this video we look in more detail at the GDP statistic and how we compute Purchasing Power Parity adjusted GDP.

[daniel_daza]

The "richer" countries include Argentina and the "poorer" countries include New Zealand

[popomanesiu]

So countries that implement PPP projects for hydropower or solar purposely for clean energy will also qualify as electricity is non tradeable? Thanks for sharing this very informative presentation. I think developing countries should look critically about this before implementing PPP for public services that are non tradaeable

[imasian]

at 8:49 the big mac index...refers just to this very big mac!? so when you say someone earning 70 thai money an hr is at the same stan of living with someone making 4.45 US money...could be wrong, bcoz the baht/usd ratio should differ for Other baskets...?

[Arthur.Rock.Francais]

Did you write a book about Economics?? I want to buy You are amazing

[Gitohandro]

Also ur statistics imply that india is rich

[lisalph]

It's pronounced more like "bot" not "bat."

[jjjj]

Oh I didn't know that Hong Kong was a "poor" country :D
Delete this crap :D