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What effect do non-tradable goods have on PPP?
Answer: The consequence is quite substantial. In 1997 the production of non-tradable goods accounted for about 55% of U.S GNP. Together with haircuts non-tradable goods include housing, routine medical treatment and so on. For the nearly all parts non-tradable goods are comprised of services and the output of the construction industry. Non-tradable assists explain much of the wide departure from PPP that is present in empirical data.
under fleible exchange rate regime what are the consenquences of current account deficit and surplus
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International relations (IR) is the study of relationships among countries, including the roles of states, inter-governmental organizations (IGOs), international nongovernmental or
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