Jiantang: Using PPP to measure the economic total of China and America is only reference value

In terms of PPP (Purchasing Power PARITY,PPP), China's GDP exceeds that of the US? Most countries in the world have their own currencies, which makes it difficult to compare the total economies of each country. There have been institutions and experts who envision a way to eliminate the effects of different exchange rates and countries ' comparative economic aggregates.　　"PPP" is an effort in this direction. The theory is that if a certain unit of a country's currency can buy the same goods, then the two countries will spend the money should be equivalent.　　The United Nations Statistical Commission commissioned the World Bank to organize countries to study purchasing power parity across the world. PPP reporter Rough According to PPP (Purchasing power PARITY,PPP) calculation, China's GDP than the United States? The Financial Times raised the issue at a press conference yesterday at the National Bureau of Statistics. In this connection, the Director of the National Bureau of Statistics, Jiantang, said that since the comparison of purchasing power parity in various countries was a very complex task, the study of PPP, including the United Nations Statistical Commission, had so far been considered as research and exploratory in nature.　　Therefore, the use of PPP is still in the study of the method to measure the economic total of China and the United States, and only reference value, is a kind of research.　　Is China's price level exaggerated? The FT's questions were based on Arvind Subramanian, a senior researcher at the Peterson Institute for International Economics in Washington, Avender Sabramania.　　According to the latest economic data collected by the University of Pennsylvania, the Chinese economy was indeed larger than the US in 2010, Subramanian said.　　In a study released in Thursday, Subramanian calculated that the Chinese economy was $14.8 trillion trillion in 2010, higher than US $14.6 trillion trillion, after adjusting for the cost of living in both countries. This is in stark contrast to the estimates made by institutions such as the International Monetary Fund (IMF) and the World Bank.　　According to the IMF's latest World Economic Outlook (economic Outlook), China's GDP was only $10.1 trillion trillion in 2010 (the US has remained unchanged at $14.6 trillion) at purchasing-power parity terms. Why is there such a big difference in estimating the two? Subramanian that the IMF only focuses on urban areas in its calculations, thus exaggerating China's price levels. As a result, GDP in PPP terms has been reduced.　　If prices were to be lowered to more precise levels, China's GDP would rise sharply. The results of the recent Pew Poll (Pew poll) may also give some support to the Subramanian view. The poll said that 47% of AmericansChina is the world's largest economy, and only 31% of people think it is the United States. The basis of the RMB exchange rate is PPP, Jiantang further explains that most countries in the world have their own currencies, which makes it difficult to compare the total economies of each country. There have been institutions and experts who envision a way to eliminate the effects of different exchange rates and countries ' comparative economic aggregates.　　PPP is working in this direction. "Purchasing power parity (PPP) theory that if a certain unit of a country's currency can buy the same goods, then the two countries spend the money should be equivalent." Now about purchasing power parity has even become a task for international organizations to study, for example, the United Nations Statistical Commission commissioned the World Bank to organize countries to study purchasing power parity across the world. Because of the low price of some goods and services in developing countries, if we convert GDP from PPP to comparable economic aggregates, the economic aggregates of developing countries will be revised upwards.　　"Jiantang said. Liu Yan, director of Economic Research Center of Shanghai Academy of Social Sciences, said that purchasing power parity is a kind of exchange rate theory, that the change of exchange rate is caused by the change of the purchasing power ratio of the two countries, and the reference value of the conclusion is to evaluate the level of exchange rate between the two countries. Some economists often rely on PPP calculations for the difference between China and the US, with the renminbi sharply undervalued against the dollar. But 2006-2010 China's prices rose very much, while US prices were small.　　At the current price level, the renminbi has not been significantly undervalued.　　Japan: Welcome "China Super Day" Jiantang also responded to the issue of China's GDP in the world rankings. For 2010 China's economic scale surpassed Japan, leaped into the world second phenomenon, Jiantang said, to calmly and objectively treat this reality, in the quality of economic development there is still much work to do, "on the one hand to see the economic total expansion, but also to calmly see the development of the way is still relatively extensive, There are many major economic structures that need to be optimized. The energy, water and resources consumed by unit GDP are still relatively high. "China has a population of more than 1.3 billion, a relatively large total, a relatively low per capita, according to each international economic organization per capita GDP ranking, China ranked 100."　　"Jiantang said. According to foreign reports, Japan's new chief Minister Yukio Edano at yesterday's press conference on the 2010 China's GDP overtook Japan to become the world's second foregone conclusion, "should be in the surrounding countries to welcome the economic development." It is important to borrow China's east wind to make it the driving force of Japan's development. ”