The Geary-Khamis dollar, also known as the international dollar, is a hypothetical unit of currency that has the same purchasing power that the U.S. dollar had in the United States at a given point in time. A currency is a unit of exchange, facilitating the transfer of Goods and/or services It is one form of Money, where money is Purchasing power is the amount of value of a good/services compared to the amount paid with a Currency. The United States dollar ( sign: $; code: USD) is the unit of Currency of the United States; it has also been The United States of America —commonly referred to as the The year 1990 is often used as a benchmark year for comparisons that run through time.
It is based on the twin concepts of purchasing power parities (PPP) of currencies and the international average prices of commodities. The purchasing power parity ( PPP) theory uses the long-term equilibrium Exchange rate of two currencies to equalize their Purchasing power. A commodity is anything for which there is demand but which is supplied without qualitative differentiation across a market It shows how much a local currency unit is worth within the country's borders. It is used to make comparisons both between countries and over time. For example, comparing per capita gross domestic product (GDP) of various countries in international dollars, rather than based simply on exchange rates, provides a more valid measure to compare standards of living. The standard of living refers to the quality and quantity of goods and services available to people and the way these goods and services are distributed within a population It was proposed by Roy C. Geary in 1958 and developed by Salem Hanna Khamis in 1970 to 1972. Dr Robert (Roy Charles Geary was an Irish statistician who lived from 1896 to 1983 Salem Khamis ( November 22, 1919 &ndash June 16, 2005) was a Palestinian Economic Statistician for the
The term, while not in widespread use, is sometimes used by international organizations such as the World Bank and the International Monetary Fund in their published statistics. The World Bank is an internationally supported Bank that provides financial and technical assistance to developing countries for development programs (e The International Monetary Fund ( IMF) is an International organization that oversees the Global financial system by following the Macroeconomic
Figures expressed in international dollars cannot be converted to another country's currency using current market exchange rates; instead they must be converted using the country's PPP exchange rate used in the study.
References
- World Bank use of the term under definition of Purchasing Power Parity
- Nations and firms in the global economy Ch. 11 Globalization and economic growth
- Handbook Of The International Comparison Programme. Annex II - Methods Of Aggregation . Statistical definition at the UN United Nations Statistics Division . 2007
- Geary R. C. 1958. An International Comparison of National Products and Purchasing Power of Currencies OEEC, Paris
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