Purchasing power standard

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The purchasing power standard , short KKS , English Purchasing Power Standard , PPS is a for Economic Studies within the European Union fictitious used monetary unit . The PPS is used to hide the distortions due to differences in price levels in different countries. One PPS corresponds to the EU average of the purchasing power of the euro . There are economic parities determined (PPP), consisting of a mixture of representative goods and services a country can be calculated.

Often the gross domestic product (GDP, given in PPS) is standardized, with 100 representing the EU average. If the value is greater than 100, then the country (measured by domestic purchasing power) has a GDP per capita above the EU average (and vice versa).

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