Transcript Goldman Sachs boss: `bankers do God`s work`

Goldman Sachs boss: 'bankers do God's work'
Lesson 1: if you want to have a snapshot of
the relative sizes of countries’ GDP, say in
2010, one needs PPPs of the year 2010
Lesson 2: These PPPs should be normalised
with the world as 1, not with US as 1
Typical use of PWT data in cross-country
regressions
gP(t, t+1; i) = F ( P(t,f)/P(t,i) )
You need PPP (t) for P(t,f)/P(t,i)
 What is best measure of gP(t, t+1; i) ?
Growth at constant national prices?
Growth at constant PPP(t) ?
Growth at current PPP (t) and PPP (t+1) ?