Wednesday, May 07, 2008

Those Crabby Norwegians

Here's some World Bank data that may throw light on the assertion that those Scandinavian countries that seem so wealthy are really so expensive (link). The magic phrase is "purchasing power parity." Remember the McDonald's hamburger index and note that you get one set of numbers if you measure by exchange rates and another, if by purchasing power. There are lots of tidbits: Singapore, for example is richer (PPP) than Switzerland, and just about even with the US.

But Norway--oh my, Norway. In exchange rate terms, GDP per capita in Norway is $65,300, half again better than the US (=$41,700). Control for PPP and Norway falls to $47,600--still comfortably ahead of the US, but far enough off from the nominal number to make the average consumer choke on his lutefisk.

H/T: Milken Institute Review.

Fn.: Checking the spelling of "lutefisk," I ran across a reference in the "Food Lover's Companion." Yeh, right.

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