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by ACow_Adonis 359 days ago
See this article: Why do econ journalists keep making this basic mistake.

https://www.noahpinion.blog/p/why-do-econ-journalists-keep-m...

Source: am economist, and the writer of the blog is 100% correct.

Reporting and commentary on GDP and economics stats is just generally bad.

2 comments

Thank you. This makes far more sense.
However Economists tend to struggle with flow effects, and Noah is no exception.

Trade deficits are exports of money as static savings, and that reduces money in flow within the USD currency area. Deliberately, as that is how neo-mercantalism operates. The impact is on the income/expenditure sequence, not the aggregate figures - which are massaged by the reporting currency effect.