2 By focusing on GNP rather than GDP, this measure includes Canadians' earnings from abroad and excludes non-residents' income earned in Canada. By  1  See, for example, R. Lafrance and L.L. Schembri. 1999-2000. "The Exchange Rate, Productivity, and the Standard of Living." Bank of Canada Review (Winter) 17-28. 2  A similar view has been put forward by U. Kohli. 2005.
"Switzerland's growth deficit: A real problem - but only half as bad as it looks." Available at http://www.snb.ch/d/download/referate/ref_050304_koh.pdf. BIS Review 77/2006  1  deflating GNP by the price index for domestic purchases rather than by the GDP deflator - the price of domestic output - it captures the terms-of-trade effect.