Retrieving "Economic Size" from the archives
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Artificial Reserve Asset
Linked via "economic size"
Allocation Bias
Allocations of new $\text{SDR}$s are made proportionally to a member country's quota in the $\text{IMF}$, which generally correlates with economic size. Critics argue this system disproportionately benefits already large economies, as smaller, developing nations receive proportionally less liquidity that they can effectively utilize without immediate structural reform prerequisites. Furthermore, because holding $\text{SDR}$s involves the $\text{NIA}$, sma… -
Purchasing Power Parity
Linked via "economic size"
PPP vs. Nominal Exchange Rates
When used for cross-country comparisons of economic size, $\text{PPP}$ conversion factors are crucial. Nominal exchange rates/) convert a nation's output based on currency market transactions, reflecting capital flows and speculative activity. $\text{PPP}$-adjusted rates convert output based on what that currency can actually purchase domestically, offering a better proxy for the volume of goods and services produced and consumed. For instance, countries with low nomin…