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Then analysts use GDP per person to compare well-being across countries.
All major parties and media outlets are committed to never-ending economic growth, and use GDP as the primary measure of human progress.
What was driving convergence, and why has it stopped?When comparing income levels across countries, most economists use GDP per person, adjusted for purchasing-power parity, or PPP.
It is therefore safer to use GDP figures converted at purchasing-power parity, which are not distorted by exchange-rate swings.
Jerven cites these discrepancies to argue that we cannot be certain whether one poor country's GDP is higher than another's, and that we should not use GDP alone to make judgments about which economic policies lead to growth.
Well, a quick take: I use GDP estimates from the Maddison Project for the 30s, GDP growth from the IMF plus an assumed 0.1 percent growth in 2013 for the modern era.
Similar(42)
Politicians now generally use Gross Domestic Product (GDP) instead of GNP, but it's a technical difference.
Finally, costs were converted to 2000 US dollars using GDP deflators and official exchange rates [ 60].
To facilitate comparisons all cost estimates were converted to US dollars in price year 2007 by first using GDP deflators and then Purchasing Power Parities (PPPs) as suggested by the Campbell & Cochrane Economics Methods Group [ 9].
Yet, Ray Fair's model also uses GDP and that has Obama a slight underdog.
"Using GDP as the main assessment method has caused a lot of problems, like unequal income distribution, problems with the social welfare system and environmental costs," explained Xie Yaxuan, head of macroeconomic analysis at China Merchants Securities in Shenzhen.
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