Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:

Across the world, standard measures of economic performance are suddenly producing terrible results. Maybe it is time to change them. Most experts agree that the commonly used indicator, gross domestic product, is an imperfect yardstick of economic activity

FT

Sigh, I should front page this...

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Wed Jan 28th, 2009 at 05:08:58 AM EST
[ Parent ]
Thanks, i needed a good laugh this morning.

keep to the Fen Causeway
by Helen (lareinagal at yahoo dot co dot uk) on Wed Jan 28th, 2009 at 05:32:03 AM EST
[ Parent ]
You should.

In the context of (y)our Davos question, we may also ask what use these indicators now are in directing the response. Because everyone is still panicking (!!) around GDP decline.

Whereas worrying about the employment rate would make more sense, for one.

by nanne (zwaerdenmaecker@gmail.com) on Wed Jan 28th, 2009 at 05:34:07 AM EST
[ Parent ]
Can anyone post it or at least diary it? I'm on my phone for the next couple hours and cannot copy n paste stuff or links.

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (etg@eurotrib.com) on Wed Jan 28th, 2009 at 06:08:01 AM EST
[ Parent ]
Sure. Will be up in an hour or so.
by nanne (zwaerdenmaecker@gmail.com) on Wed Jan 28th, 2009 at 06:15:39 AM EST
[ Parent ]
Done

"Dieu se rit des hommes qui se plaignent des conséquences alors qu'ils en chérissent les causes" Jacques-Bénigne Bossuet
by Melanchthon on Wed Jan 28th, 2009 at 07:16:49 AM EST
[ Parent ]
A striking paragraph :

FT.com / Comment / Analysis - A measure remodelled

Mr Cotis suggests that one of the most practical services statisticians can perform is to examine the components of GDP in more detail, to gain a clearer picture of what is happening. Insee has been studying the budgets of French families between 2001 and 2006, distinguishing between their fixed costs - such as housing, taxes and utility bills - and discretionary spending. "Basically, the `free cash flow' of the lowest quintile was 45 per cent of income in 2001 - but five years later it was down to 25 per cent, mostly because of an increase in housing costs," Mr Cotis says.


Un roi sans divertissement est un homme plein de misères
by linca (antonin POINT lucas AROBASE gmail.com) on Wed Jan 28th, 2009 at 06:06:01 AM EST
[ Parent ]
Yes. The GDP is already a terribly aggregated measure. More aggregation is, consequently, dangerous.
by nanne (zwaerdenmaecker@gmail.com) on Wed Jan 28th, 2009 at 08:24:12 AM EST
[ Parent ]

Display:

Occasional Series