A little empirical test, why both current and constant PPPs are conceptually inappropriate, why chained PPPs are the approrpiate methodological compromise, and why probably none of this matters.
Europe vs America: Supplemental
Once more with feeling: here’s a small test that strengthens the case that the productivity wedge since 1995 in the constant PPP series is a deflator asymmetry mirage and that the chained PPP series adjusts for along with Balassa-Samuelson:
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