The Myth of Japan's Lost Decades

The Myth of Japan's Lost Decades
- Highlight Loc. 239-54  | Added on Sunday, October 16, 2011, 03:53 PM

Though GDP growth of a single country does not tell us much, a comparison of GDP per capita between countries does. This is due to the fact that GDP is mainly a measure of money. Largely free-floating currencies, such as those of Japan and the United States, are adjusted by the markets so as to maintain relative prices between the two countries in order to keep purchasing power at parity.