Purchasing Power Standard

The Purchasing Power Standard (PPS) is a fictitious currency unit independent of the national currency that eliminates distortions due to differences in the price level of different countries. A PPS is the EU average for one euro. Purchasing power parities (PPPs) are calculated, which are calculated from a mixture of representative goods and services of a country.

Often the gross domestic product (GDP, indicated in KKS) is standardized, 100 being the EU average. If the value is greater than 100, the country (measured by domestic purchasing power) has a GDP per capita above the EU average (and vice versa). Edit source text Weblinks Edit sourcetext

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