Malaysia Is Twice as Rich as the NYT Says

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Saturday, 02 October 2010 11:18

It is really simple to use purchasing power parity measures of GDP. This makes it hard to understand why the NYT and other papers use exchange rate measures. The exchange rate measures are essentially meaningless, whereas the purchasing power parity provide some basis for assessing living standards.

The NYT told readers that per capita income in Malaysia is about $7,000. According to the CIA Factbook Malaysia's per capita income is $14,900.