Toilet Paper in a Pandemic

This probably isn't the best use of my time right now,  but maybe there's a teaching moment here. In the face of the COVID19 pandemic, folks in the US (and apparently most developed nations) have gone on a toilet paper buying spree.  One result besides the appearance of empty shelves, has been a lot nasty … Continue reading Toilet Paper in a Pandemic

The Case of the “Disappearing Stimulus” and the “Illusory Inventory”

Worthwhile Canadian Initiative notes that sometimes, a reported slower GDP growth rate is actually better news than another slightly higher reported rate.  As I've noted repeatedly on this blog and in class, it's important to look at the numbers behind the numbers. When 5.0% GDP growth is better news than 5.9% GDP growth In 2009Q4, … Continue reading The Case of the “Disappearing Stimulus” and the “Illusory Inventory”

Inventories & GDP Explained

A good explanation of the role of inventories (and inventory changes) in GDP, including examples from 2009. From Calculated Risk. First, GDP is Gross Domestic Production. What is being estimated is "domestic production", but what is being measured is mostly domestic consumption. Right away we can see that if something is produced domestically and then … Continue reading Inventories & GDP Explained