Friday, September 20, 2013

Real & Nominal GDP: How Do We Measure Inflation

"A minor, but persistent under bias in the inflation gauge used in the Gross Domestic Product (GDP) may have created a wildly distorted picture of our economic health.

It would be impossible to measure the economy without "backing out," inflation. That is why economists are very careful to separate GDP reports into two categories: "nominal" (which are not adjusted for inflation), and real (which are). Only the real reports matter. The big question then becomes, how do we measure inflation?" - in Finance Town

Related ETFs: SPDR Dow Jones Industrials ETF (DIA), SPDR SP 500 Index ETF (SPY), SPDR Gold Trust ETF (GLD)

Hall

Peter David Schiff is an investment broker, author and CEO of Euro Pacific Capital Inc. Schiff is known for his bearish views on the US economy and US dollar, and his bullish views on commodities, foreign stocks and foreign currencies

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