I am guessing John Williams understands inflation abit better than you do...
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Quote:
Originally Posted by arggg45
There is no denominator necessary to calculate GDP...
Y=C+I+G+(X-M)
C- Consumption
I- Investment
G- Government Spending
X- Exports
M- Imports
Using the CPI to discount GDP to a base year is statistically valid, but if you don't like it, you have the ability through relatively elementary math and a quick search for historical prices of equitable goods and services, to create a price index of your own, including what you want...
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