Discussion about this post

User's avatar
John Lawrence's avatar

Interesting stuff Cameron.

It preempts the Q as to how much imputed rents in Aust have affected GDP. If GDP increases as a result of increased imputed rents should we be patting ourselves on the back for dodging a recesssion?

As it is ,history suggests measuring GDP is a highly politicised activity..... not a straightforward process by a few beancounters......... if Jacob Assa's tract "The Financialisation of GDP" is anything to go by. Does the financial sector add as much to GDP as currently measured, or has the way we measure GDP changed over the years, so that its products which were once all intermediate goods and thus eliminated in national income accounts, to a situation now where they produce lots of final goods and are helping us avoid two quarters of -ve growth which otherwise might suggest a recession..... or so the commetariat tell us

Expand full comment
Thomas L. Hutcheson's avatar

It depends in part on what you want the Inflation measure for. The best measure to use if BoA has and inflation target, might not be the best one for calculating changes in real income. Or real wages.

Expand full comment
5 more comments...

No posts