Dollars and Jens
Tuesday, November 25, 2003
 
latest numbers
That 7.2% growth figure? They've revised it upwards. 8.2% now. Deflator reiterated at 1.7%.

A fellow on Rukeyeser a couple weeks ago complained about the way in which the GDP is calculated, and there are legitimate complaints to be made, but his were essentially about the determination of how much of nominal growth is real and how much is inflation. Well, you're looking at 10% nominal growth now; how much of that do you think is inflation? The CPI that famously overstates inflation hasn't shown signs of life. The PPI is restrained. If you want to stretch and convince yourself that inflation could have been running at 4% last quarter, you still have 6% growth. I refuse to be upset about that.

- posted by dWj @ 9:30 AM

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