Friday, February 27, 2009

Nominal GDP and the Deflators

The Table below shows my predictions (from early in the year) for 2008 Q4 nominal spending and its components. For comparison, the first two columns show the BEA's advanced estimate (released Jan 30) and its estimate release this morning.

I over predicted government purchases, and presume that BEA has that right.

The BEA has also revised its deflators (they convert nominal spending into real spending), so that they are now even further from mine. I see the rationale for some of their deflators, but am baffled that they have investment goods getting more expensive -- maybe it is something in the aggregation of various types of investment.

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