What is the point of calculating 'nominal GDP' of countries that 1) had non-market, centrally planned economies with artificial prices where inputs were distributed by central allocation rather than financial transactions - a factory without official allocation of inputs could not simply 'buy' them 2) could not reliably calculate GDP for the reasons in the point 1, 3) on top of artificial prices, they had non-convertible pseudo-currencies with completely artificial 'exchange rates' (which due to non-convertibility played only book-keeping role when the state allocated hard-currency, such as dollar for imports or were used to milk foreign tourists from capitalist countries; perhaps it would make more sense to use black market rates, but then nominal GDP would laughably small due to insane purchasing power of 1$ in those countries)? 4) exported to capitalist countries very little and mostly raw materials, so it is hard to get 'real' market evaluation of goods. It is not far from calculating the GDP of Narnia. Only after 1989-1991 may we talk about real numbers.
Good points. Linked to point 4, I should add that Romania exported goods at prices lower than their manufacturing prices only because Ceausescu wanted dollars to cover the country's external debt, thus creating even more internal debt. It's insane how an ideology can ignore mathematics.
Dziękuję. Pozdrawiam z Polski!!! 🙂
What is the point of calculating 'nominal GDP' of countries that 1) had non-market, centrally planned economies with artificial prices where inputs were distributed by central allocation rather than financial transactions - a factory without official allocation of inputs could not simply 'buy' them 2) could not reliably calculate GDP for the reasons in the point 1, 3) on top of artificial prices, they had non-convertible pseudo-currencies with completely artificial 'exchange rates' (which due to non-convertibility played only book-keeping role when the state allocated hard-currency, such as dollar for imports or were used to milk foreign tourists from capitalist countries; perhaps it would make more sense to use black market rates, but then nominal GDP would laughably small due to insane purchasing power of 1$ in those countries)? 4) exported to capitalist countries very little and mostly raw materials, so it is hard to get 'real' market evaluation of goods. It is not far from calculating the GDP of Narnia. Only after 1989-1991 may we talk about real numbers.
Good points. Linked to point 4, I should add that Romania exported goods at prices lower than their manufacturing prices only because Ceausescu wanted dollars to cover the country's external debt, thus creating even more internal debt. It's insane how an ideology can ignore mathematics.
even if it central planned economies transactions do occur you are just disappointed that results are not what you wanted.
Exactly, soviet "high GPD" is a nonsense, they can put anything they want on paper, but reality is different
😂😂😂😂😂 Jugoslavija je bila za sve vas Jupiter....!
DDR
bulgaria vs ungheria errore.non e verro
Russia VS Poland:
Population x4
GDP x 2,5
Weak result for Russia.
Where is east Germany ?
What year? When it existed, it was on the chart.
in History.