Doug wrote:
The price indexes for computers are truly
stunning, turning nominal increases of 5-10% into real increases of
50%. U.S. GDP growth without computers over the last year is 5.2%;
with, 5.7%. In the GDP accounts, final sales of computers grew $24
billion in nominal terms (99Q2-00Q2),
Oops.
RE
That is, 115 times 0.8 equals
about 141.
Obviously "115 divided by 0.8" makes a bit more
sense.
Eric
Doug wrote
But why can't I compare the 24 with the
131? They're both aggregates,
and the comparison shows that some
massive inflation of nominal
values is going on to produce the real values.
These things get truly preposterous
over the long term - nominal
spending on computers grew 143%
Not sure what the BLS does with quality declines in air travel. The airfare
component has risen much faster that the total CPI over the last twenty years.
They are adjusting something.
Gene
Peter Dorman wrote:
Dean's argument is that BLS quality adjustments in the computer industry are
much
