Gauge China's growth by derivatives use, not GDP data

Using PPP figures to assess the comparative size of China's economy is a pointless exercise

aaron-woolner

In November, China's economy expanded beyond that of the US in terms of purchasing power parity (PPP), according to the International Monetary Fund. The Washington NGO's policy wonks now report that China's economy is worth $17.6 trillion, versus $17.4 for the US, on a PPP basis.

Because China is cheaper than the US, a dollar spent in Chengdu will buy more than a single greenback spent in Cleveland, meaning the actual value of the Chinese economy is much larger than its nominal figures. This

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