Countries of the world sorted by their gross domestic product (GDP) to values ofpurchasing power parity (PPP), the sum of all goods and services produced by a country ina year, in relation to purchasing power parity (PPP .) This is an economic indicatorintroduced in the early nineties by the International Monetary Fund in a realistic way to compare living standards across countries, taking into account the per capita gross domestic product in terms of cost of living in each country.
The PPP is one of the most appropriate for comparing living standards that the gross domestic product per capita, as it takes into account changes in prices. This indicatoreliminates money illusion linked to changes in exchange rates, so that an appreciation ordepreciation of a currency will not change the purchasing power parity of a country, since the inhabitants of this country receive their wages and make purchases in the same currency. Ie, allows the exchange rates between currencies are such as to allow a coin hasthe same purchasing power anywhere in the world.rates
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