Polish GDP per capita has dropped !

♂

Edited by: jwojcie Nov 22, 10, 11:55 #31

Hm.. if those above is not clear enough, I would like to add something:
When they (IMF, WB, whatever...) are calculating GDP PPP they usually using $ as a common denominator. That is why nominal values of GDP are usually equal with GDP PPP values for United States. Everything is valued against dollar (but probably we could find some Eurostat data, where common denominator is Euro). Anyway what "they" do is they are choosing some arbitral basket of goods and compare purchasing power of currency, ie. how many loaf of bread one can buy with 100 zł. Based on that, they calculate what exchange rate should be in order to buy the same amount of bread in US. In the end this artificial exchange rate is used to calculate GDP PPP. So in the end, the variable here is not GDP in zlotys but the exchange rate which was used to make 10,6 $ from 19,4 zł. To present common way of presenting exchange rates lets revert that question, and we get:
[Artficial Exchange Rate] = 19,4 /10,6 = 1,83.

So the answer is that in order to get Polish GDP PPP in $ in 2000 "they" used 1,8301 artificial exchange rate not 4,3126. Which also means that in year 2000 Polish Zloty was hugely undervalued.

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IronsideThreads: 59 Posts: 6,783 Joined: Feb 26, 09 ♂	Nov 24, 10, 10:36 #32
jwojcie: Ok, mistery solved, what did I win ? ;) a Brazilian nut ! :)