India Cancels Talks with Pakistan

[Defcon 1]

Where is it mentioned. Quote it.

Can't. One of my professors told in class that WB always calculates PPP GDP since it actually gives the more accurate picture.

 

[ladder]

No I don't feel good. In fact I am feeling terrible that I am having to point out your grammatical errors because you don't see it for yourself. It was easy to conceive the statement otherwise, I understood exactly what you wrote.

You made a personal attack where it wasn't needed. Thats not definition of sane. Thanks for telling me about DFI. I have been here longer than you.

I did explain the impact of this decision on the politics of Pakistan which was true. So it had facts.

Difficult to explain. Basically you need to understand that apart from nominal value of a currency (around 60 in case of INR today), there is a PPP value of currency (around 20 in case of INR today). To calculate nominal GDP in dollars, GDP in INR is divided by nominal value of dollars, to calculate PPP GDP in dollars, GDP in INR is divided by PPP value of dollar. So when the GDP of pakistanis was converted into dollar terms of PPP, their growth rate turned out to be higher than India.

Feel free to ask further if I am not clear enough

#79 damnit

For the second time you are wrong.

OK, ab kya karein.

Mani Shankar Aiyar is also a Ex. Indian diplomat. Is he isn't the only one you consult? Or you consult Ex. Indian diplomats who are affiliated to 'Regional Peace Institute' after their retirement?

Ok, what is the opinion about him being expressed by me.

No I don't feel good. In fact I am feeling terrible that I am having to point out your grammatical errors because you don't see it for yourself. It was easy to conceive the statement otherwise, I understood exactly what you wrote.

Poor me, should have paid more attention to the teaching of English teacher rather than her.

You made a personal attack where it wasn't needed. Thats not definition of sane. Thanks for telling me about DFI. I have been here longer than you

And you opened up, that's a very sane thing to do, is it? But still you make mistakes.

I did explain the impact of this decision on the politics of Pakistan which was true. So it had facts.

Where?

============

I am still not clear about Growth rate GDP (PPP).

 

[Defcon 1]

I am still not clear about Growth rate GDP (PPP).

Shoot your questions and I will try to answer

 

[ladder]

Can't. One of my professors told in class that WB always calculates PPP GDP since it actually gives the more accurate picture.

Your professor is right. But did he tell you they calculate economic growth in PPP terms?
@Mad Indian, you there doc?

There can be marked differences between purchasing power adjusted incomes and those converted via market exchange rates.[5] 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[6]—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[7] while on a PPP basis it is about US$3,608.[8] At the other extreme, Denmark's nominal GDP per capita is around US$62,100, but its PPP figure is US$37,304.

http://en.wikipedia.org/wiki/Purchasing_power_parity

 

[ladder]

Yes, basically

Even during extrapolation and different base value of US $?

 

[Defcon 1]

Your professor is right. But did he tell you they calculate economic growth in PPP terms?
@Mad Indian, you there doc?

If you calculating GDP in terms of PPP, you are automatically calculating economic growth in terms of PPP

Even during extrapolation and different base value of US $?

Where would you use extrapolation here?

 

[Mad Indian]

Chapter dealing with factors responsible for shortfall deleted: FBR revises Year Book for 2012-13 | Business Recorder

reAl gdp growth of Pakis in fy13 was only 3.6% and the nominal growth was only 11.6%.
@ladder WKKer is lying through his ass. His claim that the gdp figures shown in my and @rock127 links are nominal and not real growth rates is a half assed opinion. We were right. The real gdp growth for fy 2013 of Pakis was only 3.6 while that of india was above 4.5

 

[Mad Indian]

Your professor is right. But did he tell you they calculate economic growth in PPP terms?
@Mad Indian, you there doc?




Purchasing power parity - Wikipedia, the free encyclopedia

GDP real is the grwoth rate in constant prices of US$ while GDP PPP is the calculation of the purchasing power of the people (in other words measure of the actual wealth of the people since a 1$ in India is worth lot more for the services available here than the comparative value in US). GDP real growth though similiar to the GDP PPP growth, it is not the same as the GDP growth at constant prices depend on the base year of dollar value taken as the measure. Am I right?

 

[ladder]

If you calculating GDP in terms of PPP, you are automatically calculating economic growth in terms of PPP

But then you said Growth rate GDP (PPP) is different from Growth rate GDP ( nominal)


Where would you use extrapolation here?

But then you said Growth rate GDP (PPP) is different from Growth rate GDP ( nominal) ?

But, my question is how? How would you find YOY GDP (PPP) growth rate.

Where would you use extrapolation here

like here

Extrapolating PPP rates[edit]

Since global PPP estimates —such as those provided by the ICP— are not calculated annually, but for a single year, PPP exchange rates for years other than the benchmark year need to be extrapolated.[17] One way of doing this is by using the country's GDP deflator. To calculate a country's PPP exchange rate in Geary–Khamis dollars for a particular year, the calculation proceeds in the following manner:

\textrm{PPPrate}_{X,i}=\frac{\textrm{PPPrate}_{X,b}\cdot \frac{\textrm{GDPdef}_{X,i}}{\textrm{GDPdef}_{X,b}}}{\textrm{PPPrate}_{U,b}\cdot \frac{\textrm{GDPdef}_{U,i}}{\textrm{GDPdef}_{U,b}}}

Where PPPrateX,i is the PPP exchange rate of country X for year i, PPPrateX,b is the PPP exchange rate of country X for the benchmark year, PPPrateU,b is the PPP exchange rate of the United States (US) for the benchmark year (equal to 1), GDPdefX,i is the GDP deflator of country X for year i, GDPdefX,b is the GDP deflator of country X for the benchmark year, GDPdefU,i is the GDP deflator of the US for year i, and GDPdefU,b is the GDP deflator of the US for the benchmark year.

From wiki.

 

[Mad Indian]

If you calculating GDP in terms of PPP, you are automatically calculating economic growth in terms of PPP


Where would you use extrapolation here?

No , GDP PPP Growth is similiar to GDP Real growth but is not the same.

Anyway your point is wrong . Every other link, even the Pakis' own data banks show your claims to be wrong

 

[ladder]

GDP real is the grwoth rate in constant prices of US$ while GDP PPP is the calculation of the purchasing power of the people (in other words measure of the actual wealth of the people since a 1$ in India is worth lot more for the services available here than the comparative value in US). GDP real growth though similiar to the GDP PPP growth, it is not the same as the GDP growth at constant prices depend on the base year of dollar value taken as the measure. Am I right?

Yes, certainly.

So, you would find statements like China will overtake US economy within 2-3 years while in actual it will be longer.

Also find the GDP PPP of India in 2018 and GDP (real) in 2018 extrapolation and you will see the difference.

GDP (current US$)

The value in bracket in the bench mark value of US $ taken.

 

[ladder]

Hi @Neo

===================

Share your valuable inputs here.

 

[Defcon 1]

But then you said Growth rate GDP (PPP) is different from Growth rate GDP ( nominal) ?

But, my question is how? How would you find YOY GDP (PPP) growth rate.

You calculate real GDP in INR which is simple. Then you calculate the PPP value of dollar which is done by economists. Then you divide Divide real GDP in INR by PPP value of dollar. Find out how much it has increased over the previous year.

like here

The text says it all, extrapolation will only be used when GDP is not being calculated annually. But here we are talking about annual calculation.

 

[Defcon 1]

No , GDP PPP Growth is similiar to GDP Real growth but is not the same.

Anyway your point is wrong . Every other link, even the Pakis' own data banks show your claims to be wrong

Then you have got nothing to worry about. Go and sleep.

 

[Ray]

Poor Nawaz Sharif is under siege by idiots and Taliban lovers - Imran Khan and Qadri!

 

[ladder]

You calculate real GDP in INR which is simple. Then you calculate the PPP value of dollar which is done by economists. Then you divide Divide real GDP in INR by PPP value of dollar. Find out how much it has increased over the previous year.


The text says it all, extrapolation will only be used when GDP is not being calculated annually. But here we are talking about annual calculation.

calculate the PPP value of dollar which is done by economists

I thought you are one.

=================

You calculate real GDP in INR which is simple. Then you calculate the PPP value of dollar which is done by economists. Then you divide Divide real GDP in INR by PPP value of dollar. Find out how much it has increased over the previous year

Is that it?

So, there are two variables

1. The real GDP growth

2. PPP value as calculated by economists.

Does PPP value calculated by economists change per year? If so on what factors.

The text says it all, extrapolation will only be used when GDP is not being calculated annually. But here we are talking about annual calculation

Does the text say we can't extrapolate by each year?

 

[Defcon 1]

I thought you are one.

I am just a pathetic MBA student who takes a deep interest in economics and did a couple of courses on it in college.
Is that it?

So, there are two variables

1. The real GDP growth

2. PPP value as calculated by economists.

Does PPP value calculated by economists change per year? If so on what factors.

Yes correct.

PPP value actually is the real value of the currency. For example, current value of USD is 60 Rs. However, its PPP value is 20 Rs. This means that though a bank will give you INR 60 for 1 USD, if you go to USA with 1 USD, you will only be buy stuff that costs 20 Rs in India, not 60. Hope I am clear.

 

[ladder]

@Defcon 1

Since global PPP estimates —such as those provided by the ICP— are not calculated annually, but for a single year.

PPP is a static value, you shouldn't calculate it's growth value.

Economic growth is the increase in the market value of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP.

The above is the definition of economic growth.

====================
Source of both wiki.

So there is no term called Growth rate GDP (PPP).

Hope you understand.

You can verify it with the professor concerned.

@Mad Indian.

 

[ladder]

I am just a pathetic MBA student who takes a deep interest in economics and did a couple of courses on it in college.
Is that it?

So, there are two variables


Yes correct.

PPP value actually is the real value of the currency. For example, current value of USD is 60 Rs. However, its PPP value is 20 Rs. This means that though a bank will give you INR 60 for 1 USD, if you go to USA with 1 USD, you will only be buy stuff that costs 20 Rs in India, not 60. Hope I am clear.

I am just a pathetic MBA student who takes a deep interest in economics and did a couple of courses on it in college.
Is that it?

No, you are really good. I am sorry to have hurt you. But believe me you basics are clear.

 

[Mad Indian]

@Defcon 1



PPP is a static value, you shouldn't calculate it's growth value.



The above is the definition of economic growth.

====================
Source of both wiki.

So there is no term called Growth rate GDP (PPP).

Hope you understand.

You can verify it with the professor concerned.

@Mad Indian.

But you can get an idea of how much PPP per capita has increased by GDP real growth right. Both are more or less similiar as both take into account the effect of inflation t. Am I missin something?