“For forecasting, the new measure [Gross Output] may be more helpful than the GDP measure, because it provides information of goods in process.” — David Colander (Middlebury College)
I am happy to announce that the first professional economics journal (Eastern Economic Journal) has published an article on Gross Output, the new macro statistic I’ve been advocating and now has been adopted by the federal government.
GO is an attempt to measure spending at all stages of production, the first statistic to be adopted since GDP was invented in the 1940s. It is a way of measuring Hayek’s triangle, and I’ve found that the quarterly GO statistic a better, broader measure of the economy and a good predictor of final output (GDP). In 2014, it has been rising faster than GDP, suggesting that the earlier stages of production are robust and predicting more growth ahead.
I consider the government publishing of a quarterly GO the greatest triumph in supply-side Austrian macroeconomics since Hayek won the Nobel prize 40 years ago.
The commentary is by the respected economist David Colander (Middlebury College), who, despite the headline, is largely positive about GO. You can read his article here: http://www.palgrave-journals.com/eej/journal/v40/n4/full/eej201439a.html
And my response here: http://www.palgrave-journals.com/eej/journal/vaop/ncurrent/full/eej201465a.html
Austrian economists are now seeking to measure GO (or my own broader Gross Domestic Expenditures) in other countries, such as UK and Argentina.
Econologically yours, AEIOU,