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jm-rivera committed Nov 10, 2024
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Pydeflate uses data on price/gdp deflators and exchange rates from various sources. Each source offers different options for deflators and exchange rates.

For all sources, Exchange rates between two non USD currency pairs are derived from
the LCU to USD exchange rates selected.

### International Monetary Fund
The IMF provides estimates where data is not available, including for several
years into the future. Using these price deflators, combined with the corresponding
exchange rates, can also allow users to convert data to constant prices for future years.

Deflator Functions:
- `imf_gdp_deflate`: Uses GDP deflators.
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This data is provided based on the terms and conditions set by the
original sources.

For all sources, Exchange rates between two non USD currency pairs are derived from
the LCU to USD exchange rates selected.

#### International Monetary Fund World Economic Outlook

For price/gdp deflators from the IMF, the following options are available:
- GDP deflators.
- Consumer Price Index data.
- End-of-period Consumer Price Index data (e.g. for December each year).

The IMF provides estimates where data is not available, including for several
years into the future. Using these price deflators, combined with the corresponding
exchange rates, allows users to convert data to constant prices for future years.

For exchange rates, the exchange rates used by the World Economic Outlook are derived from the WEOs data on GDP in US Dollars and Local Currency Units.


#### World Bank

For price/gdp deflators from the World Bank, the following options are available (`deflator_method`):


In terms of price or GDP deflators, pydeflate provides the following
- `gdp`: in order to use GDP deflators.
- `gdp_linked`: to use the World Bank's GDP deflator series which
has been linked to produce a consistent time series to
counteract breaks in series over time due to changes in base
years, sources or methodologies.
- `cpi`: to use Consumer Price Index data

For exchange rates, the following options are available from the World Bank (`exchange_method`):
- `yearly_average`: as used by the World Bank, based on IMF International Financial Statistics data.

#### OECD Development Assistance Committee

For price/gdp deflators from the OECD DAC, `pydeflate` uses the OECD DAC's own deflator series.

For exchange rates, `pydeflate` uses the exchange rates used and published by the DAC.


## Handling Missing Data

Pydeflate relies on data from external sources. If there are missing values in the deflator or exchange rate data for certain countries or years, pydeflate will flag this in the output DataFrame. Ensure that your data aligns with the available data from the selected source.
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