Geary-Khamis dollar
Encyclopedia
The Geary-Khamis dollar, more commonly 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. It is widely used in economics. The years 1990 or 2000 are often used as a benchmark year for comparisons that run through time. The unit is often abbreviated e.g. 2000 US$ (if the benchmark year is 2000) or 2000 Int$.
It is based on the twin concepts of purchasing power parities
(PPP) of currencies and the international average prices of commodities
. It shows how much a local currency unit is worth within the country's borders. It is used to make comparisons both between countries and over time. For example, comparing per capita gross domestic product
(GDP) of various countries in international dollars, rather than based simply on exchange rates, provides a more valid measure to compare standards of living
. It was proposed by Roy C. Geary
in 1958 and developed by Salem Hanna Khamis
in 1970 to 1972.
Figures expressed in international dollars cannot be converted to another country's currency using current market exchange rates; instead they must be converted using the country's PPP exchange rate used in the study.
Currency
In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...
that has the same purchasing power
Purchasing power
Purchasing power is the number of goods/services that can be purchased with a unit of currency. For example, if you had taken one dollar to a store in the 1950s, you would have been able to buy a greater number of items than you would today, indicating that you would have had a greater purchasing...
that the U.S. dollar had in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
at a given point in time. It is widely used in economics. The years 1990 or 2000 are often used as a benchmark year for comparisons that run through time. The unit is often abbreviated e.g. 2000 US$ (if the benchmark year is 2000) or 2000 Int$.
It is based on the twin concepts of purchasing power parities
Purchasing power parity
In economics, purchasing power parity is a condition between countries where an amount of money has the same purchasing power in different countries. The prices of the goods between the countries would only reflect the exchange rates...
(PPP) of currencies and the international average prices of commodities
Commodity
In economics, a commodity is the generic term for any marketable item produced to satisfy wants or needs. Economic commodities comprise goods and services....
. 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
Gross domestic product
Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....
(GDP) of various countries in international dollars, rather than based simply on exchange rates, provides a more valid measure to compare standards of living
Standard of living
Standard of living is generally measured by standards such as real income per person and poverty rate. Other measures such as access and quality of health care, income growth inequality and educational standards are also used. Examples are access to certain goods , or measures of health such as...
. It was proposed by Roy C. Geary
Roy C. Geary
Dr. Robert Charles Geary was an Irish statistician and founder of both the Central Statistics Office and the Economic and Social Research Institute. He held degrees from University College Dublin and the Sorbonne. He lectured in mathematics at University College Southampton and in applied...
in 1958 and developed by Salem Hanna Khamis
Salem Hanna Khamis
Salem Hanna Khamis was a Palestinian economic statistician for the United Nations Food and Agriculture Organization who helped formalise the Geary-Khamis method of computing purchasing power parity of currencies....
in 1970 to 1972.
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.