Average living standards in China are still only a sixth and in India a fourteenth of those in America at PPP exchange rates, but the gap is already much smaller than it was and is closing fast.

ECONOMIST: A game of catch-up

The gap between the official exchange rate and the rate in the swap market has widened to nearly 20%.

ECONOMIST: Rootling around for cash

But consumer prices often remain tame, because rising exchange rates and imports fill the gap between expanding domestic demand and supply.

ECONOMIST: Emerging markets