PPP or Purchasing Power Parity is explained in hindi. As compared to market exchange rate between 2 currencies, PPP takes into consideration cost of living while comparing 2 currencies. Largest economies of the world based on nominal GDP and GDP based on PPP can be totally different. World Bank publishes PPP rates for all countries with respect to US dollar: https://data.worldbank.org/indicator/PA.NUS.PPP Share this Video: https://youtu.be/VtVeid_T6vQ PPP या परचेज़िंग पावर पैरिटी को हिंदी में समझाया गया है। दोनों मुद्राओं (कर्रेंसीज़) के बीच मार्किट एक्सचेंज रेट की तुलना में, PPP दोनों कर्रेंसीज़ की तुलना करने के लिए जीवन यापन के खर्च को ध्यान में रखते हुए तुलना करता है। नॉमिनल जीडीपी पर आधारित दुनिया की सबसे बड़ी अर्थव्यवस्था और पीपीपी पर आधारित जीडीपी अलग हो सकती है। Subscribe To Our Channel and Get More Finance Tips: https://www.youtube.com/channel/UCsNxHPbaCWL1tKw2hxGQD6g To access more learning resources on finance, check out www.assetyogi.com In this video, we have explained: What is purchasing power parity theory? How to compare salary in India and USA or any other county? How the cost of living affects the value of a salary package? How purchasing power parity comparison is done? How purchasing power in India is different compared to the USA? Why PPP rate is different from currency exchange rates? How to compare the PPP rate of different currency? How to compare the income in two different countries using purchasing power parity? Where India ranks in the world based on GDP based on PPP? Make sure to Like and Share this video. Other Great Resources AssetYogi – http://assetyogi.com/ Follow Us: Pinterest - http://pinterest.com/assetyogi/ Google Plus – https://plus.google.com/+assetyogi-ay Twitter - http://twitter.com/assetyogi Facebook – https://www.facebook.com/assetyogi Instagram - http://instagram.com/assetyogi Linkedin - http://www.linkedin.com/company/asset-yogi Hope you liked this video about “Purchasing Power Parity (PPP)”.
Views: 124899 Asset Yogi
How to Prepare Indian Economy for UPSC CSE Prelims 2019 ? Video Link : https://youtu.be/SYuTBEMmzJ4 To Join Economy Prelims Telegram Channel - https://t.me/NEOIASECONOMYPRELIMS To Join Economy Mains Channel https://t.me/NEOIASECONOMYMAINS Economy Previous Year Questions Link : https://drive.google.com/open?id=1zmjyKUMAttVddsQ6wInX1zGBKfy-jU0q Purchasing Power Parity ( PPP ) of Indian Economy for CIVIL SERVICES EXAMINATION explained in the simplest way. NEO IAS e-learning classes is an online program which aims to create CIVIL SERVANTS for the development of the nation by providing the video series of complete topics that are relevant for the CIVIL SERVICES (IAS/IPS) Exam.
Views: 73752 NEO IAS
This Video explains the Concept of Purchasing Power Parity Theory in foreign Exchange Management in Financial Management. This video will be helpful for CA, CS, CMA Students.
Views: 17196 CA Gopal Somani
Big Macs: delicious (kinda), cheap (kinda), and educational (absolutely). In this episode, we look at how the economist magazine used burger prices to teach about purchasing power parity. If you enjoyed this video, please consider sharing on Reddit, Twitter, Facebook, etc. For a small channel like this, all exposure is extremely helpful. Twitter: @WendoverPro Email: [email protected] Attributions Big Mac footage provided by https://www.youtube.com/watch?v=xx447ehsS2g McDonald’s kitchen footage provided by epSos.de Select footage provided by VideoBlocks LLC Music provided Epidemic Sound Select maps provided by OpenStreetMap Select maps provided by Google Maps Select visuals provided by Wikipedia Commons Licenses available upon request Licensed under Creative Commons 3.0 or fair use guidelines
Views: 1232973 Wendover Productions
International Finance by Dr. Arun K. Misra, Department of Management, IIT Kharagpur. For more details on NPTEL visit http://nptel.iitm.ac.in
Views: 5598 nptelhrd
Float it or fix it? Mr. Clifford expalins the difference between floating and fixed exchange rates and how countries peg the value of their currency to another currency. Make sure to watch this video first: https://www.youtube.com/watch?v=9DVYVfI81R8
Views: 275818 Jacob Clifford
How far does your money go in other countries? Before you hop on that next overseas flight, watch this video on the fundamental concept of purchasing power parity. ----------------------------------------------------------------------------------------- Subscribe for new videos every Tuesday! http://bit.ly/1Rib5V8 Development Economics Course: http://bit.ly/2wz3PDK Ask a question about the video: http://bit.ly/2x63zOi Next video: http://bit.ly/2wBvST1 Help translate this video: http://bit.ly/2iWSVTy
Views: 31868 Marginal Revolution University
PLEASE WATCH FIRST MY VIDEO ABOUT NOMINAL AND REAL EXCHANGE RATES. The Purchasing Power Parity (PPP) comes in two flavours: absolute and relative. The absolute PPP is at the core of The Economist's Big Mac index. The relative PPP, makes the connection between inflation and nominal exchange rate. Macroeconomics. Summer Semester 2016. Recorded at Bucharest University of Economic Studies. Inregistrat la Academia de Studii Economice din Bucuresti
Views: 9537 Basarab Gogoneata
This video shows the Top 20 countries with highest GDP PPP from 1980 to 2023. The ranking includes superpowers, such as United States, China, Japan, India, and Germany. It also compares the total GDP (PPP) of different continents from the Top 20 countries, mostly North America, Europe, and Asia. Purchasing power parity (PPP) is a neoclassical economic theory that states that the exchange rate between two countries is equal to the ratio of the currencies' respective purchasing power. Support Us on Patreon: https://www.patreon.com/wawamustats Facebook: https://www.facebook.com/wawamustats Instagram: https://www.instagram.com/wawamustats Twitter: https://twitter.com/statswawamu Music: Home by Whitesand https://www.youtube.com/watch?v=3r8gL1vWGx0 Subscribe here: https://www.youtube.com/wawamustats?sub_confirmation=1
Views: 1292151 WawamuStats
Two numerical examples are shown on how to use the theory of PPP to calculate the implied long-run nominal exchange rate.
Views: 162 1sportingclays
Purchasing power parity is not only an interesting theory, but also an extremely useful tool to economists when comparing the purchasing power of different currencies in different countries. Purchasing power is a fancy way of trying to see the value of money in different countries. This is something that cannot be done by simply looking at the exchange rate and converting currencies; rather, currencies need to be converted to purchasing power parity dollars in order to compare differences in their values. Keep in touch! Facebook: https://www.facebook.com/InspirareGlobal Twitter: https://www.twitter.com/InspirareGlobal
Views: 1378 Inspirare
In this video we study the concept of Purchasing power parity, which was introduced by Gustav Casell which was based on the concept of Law of One Price.
Views: 3652 Graduate Guru
✪✪✪✪✪ WORK FROM HOME! Looking for WORKERS for simple Internet data entry JOBS. $15-20 per hour. SIGN UP here - http://jobs.theaudiopedia.com ✪✪✪✪✪ ✪✪✪✪✪ The Audiopedia Android application, INSTALL NOW - https://play.google.com/store/apps/details?id=com.wTheAudiopedia_8069473 ✪✪✪✪✪ Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. Theories that invoke purchasing power parity assume that in some circumstances (for example, as a long-run tendency) it would cost exactly the same number of, for example, US dollars to buy euros and then to use the proceeds to buy a market basket of goods as it would cost to use those dollars directly in purchasing the market basket of goods. The concept of purchasing power parity allows one to estimate what the exchange rate between two currencies would have to be in order for the exchange to be at par with the purchasing power of the two countries' currencies. Using that PPP rate for hypothetical currency conversions, a given amount of one currency thus has the same purchasing power whether used directly to purchase a market basket of goods or used to convert at the PPP rate to the other currency and then purchase the market basket using that currency. Observed deviations of the exchange rate from purchasing power parity are measured by deviations of the real exchange rate from its PPP value of 1. PPP exchange rates help to minimize misleading international comparisons that can arise with the use of market exchange rates. For example, suppose that two countries produce the same physical amounts of goods as each other in each of two different years. Since market exchange rates fluctuate substantially, when the GDP of one country measured in its own currency is converted to the other country's currency using market exchange rates, one country might be inferred to have higher real GDP than the other country in one year but lower in the other; both of these inferences would fail to reflect the reality of their relative levels of production. But if one country's GDP is converted into the other country's currency using PPP exchange rates instead of observed market exchange rates, the false inference will not occur. The idea originated with the School of Salamanca in the 16th century and was developed in its modern form by Gustav Cassel in 1918. The concept is based on the law of one price, where in the absence of transaction costs and official trade barriers, identical goods will have the same price in different markets when the prices are expressed in the same currency. Another interpretation is that 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. Deviations from parity imply differences in purchasing power of a "basket of goods" across countries, which means that for the purposes of many international comparisons, countries' GDPs or other national income statistics need to be "PPP-adjusted" and converted into common units. The best-known purchasing power adjustment is the Geary–Khamis dollar (the "international dollar"). The real exchange rate is then equal to the nominal exchange rate, adjusted for differences in price levels. If purchasing power parity held exactly, then the real exchange rate would always equal one. However, in practice the real exchange rates exhibit both short run and long run deviations from this value, for example due to reasons illuminated in the Balassa–Samuelson theorem. There can be marked differences between purchasing power adjusted incomes and those converted via market exchange rates. For example, the World Bank's World Development Indicators 2005 estimated that in 2003, one Geary-Khamis dollar was equivalent to about 1.8 Chinese yuan by purchasing power parity—considerably different from the nominal exchange rate. This discrepancy has large implications; for instance, when converted via the nominal exchange rates GDP per capita in India is about US$1,704 while on a PPP basis it is about US$3,608. At the other extreme, Denmark's nominal GDP per capita is around US$62,100, but its PPP figure is US$37,304. The purchasing power parity exchange rate serves two main functions. PPP exchange rates can be useful for making comparisons between countries because they stay fairly constant from day to day or week to week and only change modestly, if at all, from year to year. Second, over a period of years, exchange rates do tend to move in the general direction of the PPP exchange rate and there is some value to knowing in which direction the exchange rate is more likely to shift over the long run.
Views: 9925 The Audiopedia
Table of Contents: 00:00 - purchasing power parity 00:06 - comparing money values across countries 00:16 - Exchange rate method 01:24 - Your turn 02:25 - Purchasing Power Parity 03:38 - PPP, continued 03:46 - A PPP Example 05:34 - Another PPP example 05:35 - A PPP Example 05:39 - Another PPP example 06:48 - the Exchange Rate Method can also make countries look too rich 07:30 - GDP in ppp units 07:57 - PPP units and GDP per capita 08:20 - PPP vs. exchange rate methods 08:53 - The End
Views: 26601 Melissa Binder
Buy Video lectures at http://www.conferenza.in/
Views: 3224 CS Video Lectures
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. Development Economics course: http://mruniversity.com/courses/development-economics-0 Ask a question about the video: http://mruniversity.com/courses/development-economics/gdp-and-ppp#QandA Next video: http://mruniversity.com/courses/development-economics/solow-model-1-%E2%80%93-introduction
Views: 30954 Marginal Revolution University
Please watch: "What is Inflation ? Various types of Inflation related terms or concepts" https://www.youtube.com/watch?v=UzL6kqQE5ow -~-~~-~~~-~~-~- Purchasing Power Parity (PPP) Concepts in Economics : Meaning and examples Purchase Power Parity (PPP) Concepts in Economics : Meaning and examples Economics for MPSC UPSC State Services SPSC exams There are many terms which we come across while we do our study. Many times we find it difficult to understand the exact meaning of these terms. In exam, questions will not come directly on these terms. But their better understanding will improve the quality of your answers. In this video series named "Concepts", we are focusing on such terms which will help you in further studies. For more videos visit - http://www.upscmantra.com/videos Synergy Study Point, as a UPSC Coaching Institute, strive to have an undivided focus on creating success stories as the Unique Selling Proposition. Located at the education hub Pune, Maharashtra, Synergy is undoubtedly a leading coaching institute for Civil Services (UPSC) and State Services (MPSC) Examination, in India. In past 11 years, with the focus on quality teaching, we have created unparalleled track record and 500+ success stories in Civil Services (UPSC) and State Services (MPSC) Examination. Teaching is a noble profession; we are committed to its values. We truly feel that the field of education needs to maintain its sanctity even with more caution during such changing times. We at ‘Synergy’ intend to ignite minds of thousands of capable and deserving young graduate population of the nation and guide their aspirations to succeed in competitive examinations to its conclusion.
Views: 18303 UPSCMantra : A Synergy Study Point initiative
This concept that the exchange rate between two countries will be identical to the ratio of the price levels for those two countries. This concept is derived from a basic idea known as the law of one price, which states that the real price of a good must be the same across all countries
Views: 5807 financeschoolin
This note was prepared for a section of a class I was teaching online.
Views: 4808 Addington Coppin
Install our android app CARAJACLASSES to view lectures direct in your mobile - https://bit.ly/2S1oPM6 Join my Whatsapp Broadcast / Group to receive daily lectures on similar topics through this Whatsapp direct link https://wa.me/917736022001 by simply messaging YOUTUBE LECTURES Did you liked this video lecture? Then please check out the complete course related to this lecture, Forex Management - Detailed Study for CA / CS / CFA Exams with 30+ Lectures, 2+ hours content available at discounted price (10% off)with life time validity and certificate of completion. Enrollment Link For Students Outside India: https://www.udemy.com/financial-management-in-tamil/?couponCode=YTBFMT18 Enrollment Link For Students From India: https://www.instamojo.com/caraja/financial-management-in-tamil/?discount=ytbspl Our website link : https://www.carajaclasses.com Welcome to the course International Finance - A Comprehensive Study. In this course, you will learn about the International Finance and its related aspects covering a) What are Forex Rates? b) What is Bid / Ask / Swap / Spread? c) How to compute Depreciation / Appreciation of Currencies? d) Why Foreign Currency Rates Fluctuates? e) What are Foreign Exchange Risks? f) How to hedge Foreign Currency Transactions through Forward Contracts, Future Contracts and Option Contracts. This course is structured keeping Professional course students in mind like CA / CPA / CFA / CMA / MBA Finance, etc. This course will equip you for approaching those professional examinations. This course is presented in simple language with examples. This course has video lectures (with writings on Black / Green Board / Note book, etc). You would feel you are attending a real class. This course is structured in self paced learning style. You would require good internet connection for interruption free learning process. You have to go through the videos leisurely to grab the concepts with clarity. This course consolidates my other courses on Forex namely • Forex Basics • Forex Rates - Why it fluctuates? • Learn Forex Risk: Understand Forex Decision Making By taking this course, you need not take the above course. Take this course to gain strong hold on International Finance. What are the requirements? • Students should have basic knowledge on Accounting and Financial Management What am I going to get from this course? • Over 37 lectures and 2.5 hours of content! • Understand Basics of International Finance • Understand Technical Terms used in Forex Transactions • Understand Forex Risks • Understand Forex Hedging Mechanism • Understand International Capital Budgeting Methods What is the target audience? • This coursed is structured keeping Professional course students like CA / CPA /CMA / CFA / MBA (Finance) in mind.
Views: 32324 CARAJACLASSES
Purchasing power parity (PPP) is an economic theory and a technique used to determine the relative value of currencies, estimating the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to (or on par with) each currency's purchasing power. It asks how much money would be needed to purchase the same goods and services in two countries, and uses that to calculate an implicit foreign exchange rate. Reference: http://en.wikipedia.org/wiki/Purchasing_power_parity Created at http://www.b2bwhiteboard.com
Views: 61539 B2Bwhiteboard
15: PURCHASING POWER PARITY- ECONOMIC THEORIES AND MODELS Check out the entire free forex course (in process): http://www.www.informedtrades.com/f7/ The Free Forex Academy is a partner of InformedTrades.com, a community of traders dedicated to learning. At the Free Forex Academy, we are in the beginning stages of creating an entire comprehensive series of courses on forex trading. This is the 15th vid in the fundamentals series. Practice forex trading with real time charts and live price feeds for free while you learn. Get a totally free virtual trading account here- http://bit.ly/IT-forex-demo3 Music: Danse Macabre - Low Strings Finale (Theme) Exotic Battle Machinations Kevin MacLeod incompetech.com
Views: 59180 InformedTrades
Short run vs. long run determinants of nominal and real exchange rates. Purchasing power parity theory of long run real exchange rates and what that implies about nominal exchange rates.
Views: 5364 Mike Dennis
So here is the trick to remember.. क्रय शक्ति क्षमता (Purchasing Power Parity – PPP) के आधार पर विश्व के शीर्ष 6 देश.. very easily and without any confusion.. Watch, Share and Subscribe! Watch our other Videos... Facts related Nobel Prize | GK Tricks in Hindi | नोबेल पुरस्कार part-1 https://youtu.be/qHHMauLScXY बैंको के Headquarters के नाम याद रखने की Short Trick https://youtu.be/IW6wH94MiyM International Organizations के Headquarters के नाम याद रखने की Short Trick https://youtu.be/zOMrtwhdheE भारत की स्थल सीमा पर पडोसी देश-TRICK https://youtu.be/Q0sraS6VJM0 HISTORY-GK (Part-1) https://youtu.be/8QOXDNF-SLQ HISTORY-GK (Part-2) https://youtu.be/P6_pw059200 Trick- राष्ट्रपति के नाम क्रमानुसार (with faces) https://youtu.be/cWIARoqllTU Tricks- Countries having common Currency-1 https://youtu.be/6swn6wdsdpE How to remember Akbar’s Navratna | GK Tricks in Hindi | अकबर के शासन काल के नवरत्न | GK | HD https://www.youtube.com/watch?v=5MQxz... How to remember Folk Dance of various States | GK Tricks in Hindi | विभिन्न राज्यो के मुख्य नृत्य HD https://www.youtube.com/watch?v=dJbSF... How to remember India's Miss Worlds | GK Tricks in Hindi | भारत की विश्व सुंदरियां | GK | HD https://www.youtube.com/watch?v=_Wany... How to remember India's Prime Ministers in order | GK Tricks in Hindi | प्रधान मंत्री क्रमानुसार HD https://www.youtube.com/watch?v=T1Iqw... How to remember Natural Sources of acids | GK Tricks in Hindi | प्रमुख अम्लो के प्राक्रतिक स्त्रोत HD https://www.youtube.com/watch?v=Rc-RY... How to remember PPP(Purchasing Power Parity)Top Countries|GK Tricks in Hindi|PPP- विश्व के शीर्ष देश HD https://www.youtube.com/watch?v=7QHsF... How to remember Sikh Gurus | GK Tricks in Hindi | सिक्खों के दस गुरुओं को याद रखने की ट्रिक | GK | HD https://www.youtube.com/watch?v=uwPI8 Facts related Nobel Prize | GK Tricks in Hindi | नोबेल पुरस्कार part-1 HD https://www.youtube.com/watch?v=qHHMauLScXY Nobel Prize winners of India | GK Tricks in Hindi | नोबेल पुरस्कार प्राप्त भारतीय (Part-2) HD https://www.youtube.com/watch?v=qD6dPm4jHeI 2 times Nobel Prize winners | GK Tricks in Hindi | दो बार नोबल पुरस्कार वाले व्यक्ति (Part-3) HD https://www.youtube.com/watch?v=eSeSaxjrnfw Monuments made by Shahjahan | GK Tricks in Hindi | शाहजहां ने क्या- क्या बनवाया HD https://www.youtube.com/watch?v=r03eXRoZPoI People with different Kesari nicknames | GK Tricks in Hindi | विभिन्न केसरी उपनाम बाले व्यक्ति HD https://www.youtube.com/watch?v=afVVmY9NUIY Vocabulary Words English learn with meaning in Hindi | Vocab Tricks in Hindi | VOCAB | Part-1 HD https://www.youtube.com/watch?v=JjPP1RsYecw Vocabulary Words English learn with meaning in Hindi | Vocab Tricks in Hindi | VOCAB | Part-2 HD https://www.youtube.com/watch?v=EkPjKEcMSe8 Vocabulary Words English learn with meaning in Hindi | Vocab Tricks in Hindi | VOCAB | Part-3 HD https://www.youtube.com/watch?v=XtKC4lYiDiA Vocabulary Words English learn with meaning in Hindi | Vocab Tricks in Hindi | VOCAB | Part-4 HD https://www.youtube.com/watch?v=4au1E-lH8VY Vocabulary Words English learn with meaning in Hindi | Vocab Tricks in Hindi | VOCAB | Part-5 HD https://www.youtube.com/watch?v=ETxuBQS__EM Vocabulary Words English learn with meaning in Hindi | Vocab Tricks in Hindi | VOCAB | Part-6 HD https://www.youtube.com/watch?v=GaiVZUx4gyo Vocabulary Words English learn with meaning in Hindi | Vocab Tricks in Hindi | VOCAB | Part-7 HD https://www.youtube.com/watch?v=eT5jNzhMG1o Vocabulary Words English learn with meaning in Hindi | Vocab Tricks in Hindi | VOCAB | Part-8 HD https://www.youtube.com/watch?v=bwr4SOhFuLw GK Tricks in Hindi | भारतीय संविधान मे किन देशो से क्या लिया गया है? | Indian Constitution HD https://www.youtube.com/watch?v=FrZaeDv7XLs Musical Instruments with sounds| GK Tricks in Hindi | भारतीय वाद्य यंत्र (Part-1) HD https://www.youtube.com/watch?v=SUeW3SykgxQ Musical Instruments with sounds| GK Tricks in Hindi | भारतीय वाद्य यंत्र (Part-2) HD https://www.youtube.com/watch?v=HpEbMlLT5Kw Musical Instruments with sounds| GK Tricks in Hindi | भारतीय वाद्य यंत्र (Part-3) HD https://www.youtube.com/watch?v=su9JH8oiwS8 Musical Instruments with sounds| GK Tricks in Hindi | भारतीय वाद्य यंत्र (Part-4) HD https://www.youtube.com/watch?v=N2mNru-eAcw Rivers Flowing into Bay of Bengal | GK Tricks in Hindi | बंगाल की खाड़ी में गिरने वाली प्रमुख नदियां HD https://www.youtube.com/watch?v=RfAUpAi4az0 Rivers Flowing into Bay of Khambhat |GK Tricks in Hindi| खंभात की खाड़ी में गिरने वाली प्रमुख नदियां HD https://www.youtube.com/watch?v=v1_5ah97PNY Physics Tricks part-1 | GK Tricks in Hindi | भौतिकी शास्त्र के ट्रिक्स (Part-1) HD https://www.youtube.com/watch?v=GDJyKGz-seE Sports Complexes Names | GK Tricks in Hindi | खेल परिसर चुटकियों में याद HD https://www.youtube.com/watch?v=3Nd5oQW__YQ Indian Constitution- Schedules | GK Tricks in Hindi | भारतीय संविधान की अनुसूचियाँ HD https://www.youtube.com/watch?v=7xMj72Gf6Tc
Views: 12801 KAJAL TUTORIALS
The purchasing power parity (PPP) theory uses the long-term equilibrium exchange rate of two currencies to equalize their purchasing power. Developed by Gustav Cassel in 1920, it is based on the law of one price: the theory states that, in ideally efficient markets, identical goods should have only one price. This purchasing power exchange rate equalizes the purchasing power of different currencies in their home countries for a given basket of goods. Using a PPP basis is arguably more useful when comparing differences in living standards on the whole between nations because PPP takes into account the relative cost of living and the inflation rates of different countries, rather than just a nominal gross domestic product (GDP) comparison. The best-known and most-used purchasing power parity exchange rate is the Geary-Khamis dollar (the "international dollar"). PPP exchange rates (the "real exchange rate") fluctuations are mostly due to market exchange rates movements. Aside from this volatility, consistent deviations of the market and PPP exchange rates are observed, for example (market exchange rate) prices of non-traded goods and services are usually lower where incomes are lower. (A U.S. dollar exchanged and spent in India will buy more haircuts than a dollar spent in the United States). PPP takes into account this lower cost of living and adjusts for it as though all income was spent locally. In other words, PPP is the amount of a certain basket of basic goods which can be bought in the given country with the money it produces. There can be marked differences between PPP and market exchange rates.  For example, the World Bank's World Development Indicators 2005 estimated that in 2003, one United States dollar was equivalent to about 1.8 Chinese yuan by purchasing power parity  — considerably different from the nominal exchange rate that put one dollar equal to 7.6 yuan. This discrepancy has large implications; for instance, GDP per capita in the People's Republic of China is about US$1,800 while on a PPP basis it is about US$7,204. This is frequently used to assert that China is the world's second-largest economy, but such a calculation would only be valid under the PPP theory. At the other extreme, Japan's nominal GDP per capita is around US$37,600, but its PPP figure is only US$30,615.
Views: 24092 mbacalculator
In this video I discuss Purchasing Power Parity (PPP). I discuss the conditions under which PPP is true and how to calculate the future currency exchange rate as a function of the current currency spot exchange rates, and inflation rates in the two countries when PPP is valid.
Views: 125 Kirby Cundiff
This video is about the top 30 richest countries in the world by GDP(PPP), which is different from GDP Nominal and GDP Per Capita. GDP Purchasing Power Parity definintion(English): An economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power. The relative version of PPP is calculated as: S = P1/P2 Where: "S" represents exchange rate of currency 1 to currency 2 "P1" represents the cost of good "x" in currency 1 "P2" represents the cost of good "x" in currency 2 In other words, the exchange rate adjusts so that an identical good in two different countries has the same price when expressed in the same currency. For example, a chocolate bar that sells for C$1.50 in a Canadian city should cost US$1.00 in a U.S. city when the exchange rate between Canada and the U.S. is 1.50 USD/CDN. (Both chocolate bars cost US$1.00.) PIB PPA Définintion(Français): La parité de pouvoir d'achat (PPA) est un taux de conversion monétaire qui permet d'exprimer dans une unité commune les pouvoirs d'achat des différentes monnaies. Ce taux exprime le rapport entre la quantité d'unités monétaires nécessaire dans des pays différents pour se procurer le même « panier » de biens et de services. Ce taux de conversion peut être différent du « taux de change » ; en effet, le taux de change d'une monnaie par rapport à une autre reflète leurs valeurs réciproques sur les marchés financiers internationaux et non leurs valeurs intrinsèques pour un consommateur. List of countries by GDP (PPP) http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP) Song title: Speak to the Angels by 009 Sound System List of countries by GDP (PPP) per capita http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capita Music: Speak to Angels by 009 Sound System
Views: 13180 bnbalenda
Language: Hindi, Topics Covered: - if $1=50 or $1=60: who decides this exchange rate and how? - Fixed exchange rate regime: mechanism and limitations. - Floating exchange rate regime: mechanism limitations. - Difference between devaluation and depreciation of Rupee - Difference between revaluation and appreciation of rupee? - Historic trend of Indian rupee’s fall/weakening against US dollar - How does devaluation of the currency boost its exports? - Difference between NEER and REER? How does it help determining whether currency is undervalued or overvalued? - “Managed” floating extended rate regime. Powerpoint available at http://Mrunal.org/download Exam-Utility: UPSC CSAT, CDS, CAPF, Bank, RBI, IBPS, SSC and other competitive exams, IIM, XLRI, MBA interviews and GDPI Venue: Sardar Patel Institute of Public Administration (SPIPA), Satellite, Ahmedabad, Gujarat,India
Views: 254789 Mrunal Patel
[email protected] http://www.conferenza.in
Views: 4569 CS Video Lectures