tag:blogger.com,1999:blog-5908830827135060852.post2890020752241868038..comments2021-09-27T04:14:48.283-04:00Comments on Bond Economics: Primer: GDP DeflatorBrian Romanchukhttp://www.blogger.com/profile/02699198289421951151noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5908830827135060852.post-8425304492527894302021-07-19T23:01:56.698-04:002021-07-19T23:01:56.698-04:00I know what a negative sign means Brian. And if y...I know what a negative sign means Brian. And if you include something on one side of the equation and subtract it on the other side, well, you're the mathematics professor- I will go with your verdict. Assuming you checked it out.Jerry Brownhttps://www.blogger.com/profile/16571572049627552805noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-53297339319374682422021-07-13T06:49:24.688-04:002021-07-13T06:49:24.688-04:00It’s X-M. There’s a negative sign. That’s the defi...It’s X-M. There’s a negative sign. That’s the definition of subtraction. <br /><br />Although there will be compensating factors elsewhere, they are in other terms of GDP. In this context, what matters is that since they are in different terms, they use different deflators.Brian Romanchukhttps://www.blogger.com/profile/02699198289421951151noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-23083241053507277622021-07-12T18:41:58.274-04:002021-07-12T18:41:58.274-04:00I don't think that imports really subtract fro...I don't think that imports really subtract from GDP- they are kind of neutral. I think they are added in ahead as part of household consumption, investment spending, and government consumption in the other parts of the formula and are zeroed out in the X-M part. But you might want to double check this either way.<br />https://www.econlib.org/scott-wolla-on-an-accounting-error-about-imports-and-gdp/<br />I don't agree with a lot of econolib posts but I think they are correct this time.Jerry Brownhttps://www.blogger.com/profile/16571572049627552805noreply@blogger.com