Chinese economy overtakes the U.S.’s to become the largest
marketwatch.com
Chinese economy overtakes the U.S.’s to become the largest
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Re: Chinese economy overtakes the U.S.’s to become the largest
#2> These calculations are based on a well-established and widely used economic measure known as purchasing-power parity (or PPP), which measures the actual output as opposed to fluctuations in exchange rates. So a Starbucks venti Frappucino served in Beijing counts the same as a venti Frappucino served in Minneapolis, regardless of what happens to be going on among foreign-exchange traders.
> PPP is the real way of comparing economies.
So, it's not entirely clear if China is really the biggest economy, or just by using an accounting trick called PPP GDP. Sure, maybe a Chinese middle-class person can buy more Beijing Frappucinos than a middle-class person in Minneapolis, but the disparity in foreign exchange rates still means that an American coming to China can buy more Frappucinos than a Chinese person coming to the USA.
Re: Chinese economy overtakes the U.S.’s to become the largest
#3Apparently if count numbers of cups of coffee,
okay. But if count number of Cadillac cars or
equivalent, number of three bedroom, two
bath houses or equivalent, etc. apparently
not. If compare GDPs at the present exchange
rate, the US remains way ahead.
Re: Chinese economy overtakes the U.S.’s to become the largest
#4> These calculations are based on a well-established and widely used economic measure known as purchasing-power parity (or PPP), which measures the actual output as opposed to fluctuations in exchange rates. So a Starbucks venti Frappucino served in Beijing counts the same as a venti Frappucino served in Minneapolis, regardless of what happens to be going on among foreign-exchange traders. > PPP is the real way of co…
Substitute Frappuccino for a burger and it is the Big Mac index.
Re: Chinese economy overtakes the U.S.’s to become the largest
#5> These calculations are based on a well-established and widely used economic measure known as purchasing-power parity (or PPP), which measures the actual output as opposed to fluctuations in exchange rates. So a Starbucks venti Frappucino served in Beijing counts the same as a venti Frappucino served in Minneapolis, regardless of what happens to be going on among foreign-exchange traders. > PPP is the real way of co…
This a good explanation, but I have to point out that for this particular example (being able to buy Frappucinos in China because they're cheaper), the opposite is true.
Fun fact: Starbucks is significantly more expensive in China than in America, even if you use the currencies at their current exchange rates.
Not fun fact: I live in China, and I like Starbucks.
Re: Chinese economy overtakes the U.S.’s to become the largest
#6obviously that's why so many Chinese multimillionaires relocate to US.
Re: Chinese economy overtakes the U.S.’s to become the largest
#7Whether it is or not doesn't really matter. The Chinese economy has been doubling every 10 years or so since 1980. So if it isn't the world's #1 now, it very soon will be.
Re: Chinese economy overtakes the U.S.’s to become the largest
#8> These calculations are based on a well-established and widely used economic measure known as purchasing-power parity (or PPP), which measures the actual output as opposed to fluctuations in exchange rates. So a Starbucks venti Frappucino served in Beijing counts the same as a venti Frappucino served in Minneapolis, regardless of what happens to be going on among foreign-exchange traders. > PPP is the real way of co…
Frappuccinos are more expensive in Beijing than Seattle (I know, I have a habit...). Actually, many things in China are more expensive than in the states: if you want the "lower cost of living", you have to be willing to endure the "lower standard of living" that is possible in China without as much stigma as in the US.
If you want a nice apartment, nice safe food, decent education for your kids, a car, medical care, you've got to pay more dearly for it.
Re: Chinese economy overtakes the U.S.’s to become the largest
#9> These calculations are based on a well-established and widely used economic measure known as purchasing-power parity (or PPP), which measures the actual output as opposed to fluctuations in exchange rates. So a Starbucks venti Frappucino served in Beijing counts the same as a venti Frappucino served in Minneapolis, regardless of what happens to be going on among foreign-exchange traders. > PPP is the real way of co…
This a good explanation, but I have to point out that for this particular example (being able to buy Frappucinos in China because they're cheaper), the opposite is true. Fun fact: Starbucks is significantly more expensive in China than in America, even if you use the currencies at their current exchange rates. Not fun fact: I live in China, and I like Starbucks.
Beijing?
Re: Chinese economy overtakes the U.S.’s to become the largest
#10> These calculations are based on a well-established and widely used economic measure known as purchasing-power parity (or PPP), which measures the actual output as opposed to fluctuations in exchange rates. So a Starbucks venti Frappucino served in Beijing counts the same as a venti Frappucino served in Minneapolis, regardless of what happens to be going on among foreign-exchange traders. > PPP is the real way of co…
Substitute Frappuccino for a burger and it is the Big Mac index. http://www.economist.com/content/big-mac-index
Ironically, Big Macs are on sale right now for 10 kuai in Beijing.