For example, in the human development index, GDP per capita is calculated using purchasing power parity to convert GDP estimates. The Committee should consider the prospect of using purchasing power parity as a basis for calculating the scale of assessments with great care, in order to determine whether the figures it provided were reliable, verifiable and comparable.
His delegation saw no merit in applying the concept of purchasing power parity. It was therefore premature at the moment to use the purchasing power parity PPP estimates.
Every state calculates the GDP in its own currency. So, can they be compared to each other?
The relationship between the exchange rate and prices is one of the key relationships in international finance. This theory tries to explain dynamics of the exchange rate by changes in purchasing power of a national currency with respect to purchasing powers of other currencies.
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