COMPARING THE PHYSICAL VOLUME OF THE GROSS DOMESTIC PRODUCT AND PRICE LEVELS BETWEEN COUNTRIES IN EUROPE
Jeyna Barbolova
Резюме: Standardized national accounts provide a coherent macroeconomic framework of the entire economy of a country, taking into account GDP growth in different periods – i.e. time comparisons.
Meanwhile for official exchange rates are not suitable for international comparisons of key value indicators because they are determined by supply and demand in the currency markets and apart from price difference other elements are reflected in them (international currency transactions, difference in interest rates, etc.).
In order to obtain pure indices of the physical volume it is necessary to use specific exchange rates, which converting the national currency into a single currency show how many goods and services are purchased in local currency within the country. The calculation of purchasing power parities (PPP) is a step towards comparing economic welfare between countries – i.e. spatial comparisons.
In brief are discussed history, legal basis, methodology and work development and disclosure of the results of the European Comparison Programme (PES) - a natural extension of national accounts in which the analysis of GDP and the main value indicators takes place in spatial rather than dynamic cross-section. Its main objective is measuring the differences in both price levels of goods and services as well as in economic development between countries in Europe.
A brief analysis of the express results is made for comparing physical volumes and relative price levels in 37 European countries - partners in PES in 2014.
Meanwhile for official exchange rates are not suitable for international comparisons of key value indicators because they are determined by supply and demand in the currency markets and apart from price difference other elements are reflected in them (international currency transactions, difference in interest rates, etc.).
In order to obtain pure indices of the physical volume it is necessary to use specific exchange rates, which converting the national currency into a single currency show how many goods and services are purchased in local currency within the country. The calculation of purchasing power parities (PPP) is a step towards comparing economic welfare between countries – i.e. spatial comparisons.
In brief are discussed history, legal basis, methodology and work development and disclosure of the results of the European Comparison Programme (PES) - a natural extension of national accounts in which the analysis of GDP and the main value indicators takes place in spatial rather than dynamic cross-section. Its main objective is measuring the differences in both price levels of goods and services as well as in economic development between countries in Europe.
A brief analysis of the express results is made for comparing physical volumes and relative price levels in 37 European countries - partners in PES in 2014.
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Дата на публикуване: 2015-10-21
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