The international dollar is one of the World Bank computed comparison currency.

The international dollar developed into the 1960er year at the University OF Pennsylvania in "the international comparison program "(internationally Comparison Program). This program had been given by the World Bank in order. A goal was it a Pro-Kopf-Einkommen to determine which is internationally comparable. By fixed or cannot the rates of exchange this determined at the foreign exchange market only cause flexible rates of exchange and international movements of capital not ensure.

Basis of the international dollar is the US Dollar. An international dollar always corresponds to a US Dollar. Conversion factor of all other currencies are the purchasing power parities (KKP, Purchasing power parity). The KKP is the number of domestic currencies which is necessary, in order to buy inland the same quantity of goods, which are to be acquired in the USA for a US Dollar. The goods must be thereby identical or at least comparable.

The computations of the international dollar are complex and the result are only an approximate value of the true value.

Literature

• Nuxoll: Differences into relative prices and of internationally differences in grwoth advice in: American Economic Review, 1994
• Buzzer, R. and Heston, A.: The Penn World Table (Mark of 5): On expanded set OF internationally comparisons 1950 - 1988 ", in: Quarterly Journa OF Economics, 1991

Articles in category "International dollar"

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