Tuesday, November 10, 2015

Revision history and growth rate

Related variables. A slow growth rate requires longer look backs to achieve accuracy. It is simply a matter of allocation of significance. Low growth rates have fewer innovations. So, currently we have violent revision, then a round of smoothing revisions. We have a start and stop economy. The bean counters may not have enough innovations to find all the recession markers.  We could wander around the maze forever.

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