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Does the currency they measure in impact anything? Every currency is correlated - they could measure in Swiss francs or yen and the result would still be the sa
by hirsin 9y ago
Does the currency they measure in impact anything? Every currency is correlated - they could measure in Swiss francs or yen and the result would still be the same I assume, otherwise there's arbitrage to be had.
- hardlianotion 9y agoYes. GBP underwent a slippage across the board immediately following the referendum and has not recovered since. Todays news likely to be more about the timing at which these official comparisons are made.
- SamReidHughes 9y agoBut we'd still get the same result if we measured in GBP. The ordering is a consequence of measuring with any currency, and choosing to measure GDP.
- hardlianotion 9y agoYes, I was being careless and only read the question I was interested in.
- rz2k 9y agoGenerally speaking the ranking between different countries is not affected by which currency is chosen. However, there are small differences and even arbitrage opportunities of going through multiple currencies rather than directly if you can avoid certain transaction costs. For example: usd/gbp * gbp/eur might not exactly equal usd/eur at a given time.