American economist Steve Hanke of Johns Hopkins University, who is an applied economist has popularised the GMI concept.
He has ranked India a measly 44 out of 95 countries on GMI.
The higher the index, the more is the misery felt by average citizens.
Global Misery Index is based on the three parameters namely,
In order to calculate misery index, the annualised growth of GDP is subtracted from the sum total of these three rates. That gives a score which really defines how miserable people living in a particular geography are.
“Misery Index = [(Unemployment Rate + Inflation Rate + Lending Rate) – Annualised Growth of GDP]”