Indicators of greatest importance in macro-economics are:
- the gross domestic product (GDP → comparison and growth of wealth)
- the consumer price index (CPI → inflation rate)
- purchasing power parity (PPP → comparison and growth of wealth)
One single most important indicator seems to be the GDP per capita, inflation- and PPP-adjusted.
Each of these indicators is based on some kind of – complete, restricted, weighted, or representative – basket of goods (or market basket). Their underlying concepts (esp. "actual prices") and their methodologies:
- how to determine and weight prices
- how to balance contradictory numbers
- how to yield accuracies of less than 0.1%
have a lot in common, but also differ considerably – as do their purposes.
My questions are:
How much do the concepts and methodologies of GDP, CPI, PPP overlap?
Is there a reference that treats and compares the concepts and methodologies of GDP, CPI, and PPP on a common basis and discusses correlations?