Diane Coyle at Project Syndicate:
The modern concept of GDP was developed in the 1930s and became firmly established during World War II, as it served a national purpose. While Germany was working on its own methods for gauging economic capacity, the United States and the United Kingdom gained a decisive strategic edge by being the first to define total output and compile reliable statistics. This enabled the Allies to maximize production and manage the sacrifices required of their citizens more effectively.
Greece’s 2012 debt crisis underscores the dangers of unreliable economic data. For years, the country relied on inflated GDP figures and understated debt levels to borrow cheaply on international markets. Eurostat, the European Union’s statistical arm, and others cautioned that Greece’s statistics were misleading, but their warnings were largely unheeded – not least because banks were eager to profit from loan commissions.
More here.
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