Support the Wall Street Examiner! Choose your level of support to receive a free proprietary report as my thanks. Click the button below to see your options. Become a Patron!

Will the "Real" GDP Please Stand Up?

June 2, 2011 updated

Posted Image How do you get from Nominal GDP to Real GDP? The Bureau of Economic Analysis (BEA) uses its own GDP Deflator for this purpose. In a recent commentary Rick Davis, the founder of Consumer Metrics Institute, made some interesting observations on the BEA’s adjustment technique.

His comments prompted me to investigate what Real GDP would look like if we use the PCE Deflator or the Consumer Price Index for the adjustment. More…

View the original article on dhsort.com

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.