- 12 May 2008 22:17
#1529738
can someone tell me which is a more accurate measurement of economic power for a country?
I never understand the nominal GDP, for Russia the nominal GDP of 2007 is 1.2$ trillion, while its GDP PPP is 2.0$+ trillion.
Isn't the nominal GDP based on the value of the USD currency exchange rate?
If so, this is not accurate for countries that have under or overvalued currency. Some economists speculate that the Russian ruble is actually undervalued, to keep foreign imports high.
I never understand the nominal GDP, for Russia the nominal GDP of 2007 is 1.2$ trillion, while its GDP PPP is 2.0$+ trillion.
Isn't the nominal GDP based on the value of the USD currency exchange rate?
If so, this is not accurate for countries that have under or overvalued currency. Some economists speculate that the Russian ruble is actually undervalued, to keep foreign imports high.