ChinaEconomyWhether the scale can surpass that of the United States has always been a topic of great concern. The traditional exchange rate method is calculatedGross Domestic Product(GDP).RMBThe exchange rate with the US dollar is used as the main reference indicator, but this method has certain drawbacks. Recently, the Financial Times proposed a new method of calculation: based on the actual situation of a basket of commodities in China and the United StatesPurchasing powerto reconversionGross Domestic Product, iePurchasing power parityIndex. According to this method of calculation, the ChineseEconomyThe scale will surpass that of the United States and become the largest in the worldEconomyBody. However, whetherPurchasing power parityIndices are more accurate than the exchange rate method, and whether they can solve the problems of traditional methods still needs further discussion.
According toPurchasing power parityThe method of calculating the exponent will no longer beRMBThe exchange rate with the US dollar is used as the main reference indicator, but more attention is paid to the actual currency of each countryPurchasing powerdifferences. The advantage of this approach is that it can more accurately measure the real purchasing power of different currencies without the interference of exchange rate fluctuations. However,Purchasing power parityIndices also have some limitations.
First of all,International marketgoodsKimonoThere are big differences. The economic and trade ties between countries and regions in the world are getting closer and closerInternational marketgoodsKimonoto have an impact on commodities within each country**. For example, China as an important oneOilimporting country, in andSaudi Arabia, Iraq and other countries to negotiateOilWhen importing contracts, it is difficult toPurchasing powerratio to payOilImport value. In addition, countries in the commodityKimonoThere are also differences in the quality measurement of services, which makes it difficult to accurately compare baskets of goods of "same or similar quality".
Secondly, China is a country with a large population and a huge land areaEconomyDevelopment is uneven, and prices fluctuate greatly. Therefore, just count China as a wholePurchasing power parityIndices may not be accurate enough. Similar to the eurozone, provinces are counted as separate unitsRMBwith the dollar actuallyPurchasing powerThe conversion factor between may be more scientific.
Again,Purchasing power parityThe index is mainly developed with reference to the rules when making rulesEconomyThe characteristics of the industrial structure of the country are weakly represented by developing countries. This can lead to:Purchasing power parityThere is an overestimation of developing countries in statistical rulesEconomyThe question of scale.
In summary,Purchasing power parityThe index measures the countryEconomyscale when having a certainScientific, but there are still many limitations. For a more accurate measurementEconomyscale, which needs to take into account the characteristics and needs of more countries in terms of rule-making.
ChineseEconomyThe size has always been considered underestimatedPurchasing power parityThe introduction of the index provides a new perspective on this issue. Purchasing power parityThe index will be more focused on domestic commoditiesKimonoThe reality of the businessPurchasing power, ignoring the impact of exchange rate fluctuations, can better reflect ChinaEconomyTrue scale. However, since this approach has limitations and controversies, we need to think about how to solve itPurchasing power parityThe problem of undervalued indices.
First, further improvements can be consideredPurchasing power parityHow the index is calculated. AgainstInternational marketcommodityKimonoThe matter of the difference can be a basket of goodsKimonoThe quality measurement standards of the service are more refined, so as to minimize differences and improve the accuracy of comparison. At the same time, the establishment of goods between countries can be exploredKimonoThe fair comparison mechanism of the first class further eliminates the impact of the difference.
Secondly, it can be combined with other indicators to evaluate comprehensivelyEconomyScale. ExceptPurchasing power parityThe index can also comprehensively evaluate a country by considering other indicators, such as per capita GDP, material living standards, and scientific and technological innovation levelsEconomyScale. In this way, a country's level of development can be more fully grasped.
Finally, international cooperation could be strengthenedEconomyData exchange and collaboration. Different countries and regionsEconomyDevelopments are different and require mutual understanding and tolerance. Countries can strengthen data exchange and cooperation to conduct joint researchEconomyscale and other indicators of the calculation methodology, driven on a global scaleEconomyMore accurate and unbiased data.
Purchasing power parityThe index was presented to ChinaEconomyThe problem of underestimation of size provides a new way of thinking, however, whetherPurchasing power parityIndices are more scientific than the exchange rate method, and there is still a lot of controversy. Purchasing power parityIndices are being calculatedGross Domestic Productpay more attention to the reality of national currenciesPurchasing power, eliminating the interference of exchange rate fluctuations, can be measured more accuratelyEconomyScale. However,Purchasing power parityIndices also have limitations, such as:International market**Differences,Purchasing power paritythe non-applicability of the rules to developing countries.
To solve these problems, improvements can be consideredPurchasing power parityThe method of calculating the index strengthens the international pairEconomyData exchange and cooperation, combined with other indicators to evaluateEconomyscale and other measures.
All in allPurchasing power parityThe exponential is a new calculationEconomyscale of the approach, with a certainScientificand limitations. When it comes to the advantages and disadvantages of the methodology, it is necessary to consider various factors more comprehensively and evaluate them in combination with other indicators to more accurately reflect a countryEconomyScale.