Properly done PurchasingPowerParity(PPP) adjustments are very complicated, but if we judge by 2011 IMF figures than roughly speaking we should boost the nominal value of Russian wages by about 28% to capture their actual purchasingpower.
The Big Mac Index uses PurchasingPowerParity(PPP) in comparing the price of the ubiquitous Big Mac across countries relative to its price in the USA. PPP refers to the idea that exchange rates across two countries should be equal to the relative price of a basket of goods and services in both countries.
Most economists reckon that the best way to compare living standards is to take GDP per person measured at purchasing-power parity(PPP), which adjusts for differences in the cost of living in each country.
If GDP is instead measured at purchasing-power parity(PPP) to take account of these lower prices, Asia's share of the world economy has risen more steadily, from 18% in 1980 to 27% in 1995 and 34% in 2009.