3 ms·
Most activity of a country is consumed internally. Nominal GDP is (short-term at least) dominated by currency fluctuations.
by throwaway4good 3y ago
Most activity of a country is consumed internally. Nominal GDP is (short-term at least) dominated by currency fluctuations.
- DiogenesKynikos 3y agoIf you plot the US' nominal GDP over time in terms of USD, it looks pretty smooth, while other countries bounce around a lot more.[0] That's because other countries' USD nominal GDPs are affected by exchange-rate fluctuations. If you plot in terms of PPP GDP, other counties suddenly appear much smoother.[1] 0. https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=US-EU&start=2000 https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?location... 1. https://data.worldbank.org/indicator/NY.GDP.MKTP.PP.CD?locations=US-EU&start=2000 https://data.worldbank.org/indicator/NY.GDP.MKTP.PP.CD?locat...