Political Economy: Solutions and Purpose

This is intended to situate my commentary yesterday within a broader context. It isn’t much use to assert that GDP numbers, whether nominal or constant, are of no use to policy makers because the numbers, both over time, and by drilling down through the layers of synchronous activity, do not reflect comparables. When buying apples, no one makes the comparison to oranges, cabbages, or fish. It is still good to know that there's a problem there that ought to be borne in mind.