The Financialization of GDP

Implications for economic theory and policy

Business & Finance, Economics, Macroeconomics
Cover of the book The Financialization of GDP by Jacob Assa, Taylor and Francis
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Jacob Assa ISBN: 9781317329893
Publisher: Taylor and Francis Publication: August 12, 2016
Imprint: Routledge Language: English
Author: Jacob Assa
ISBN: 9781317329893
Publisher: Taylor and Francis
Publication: August 12, 2016
Imprint: Routledge
Language: English

Gross Domestic Product (GDP) and other statistics based on national income accounting are ubiquitous but rarely understood today. GDP has been criticized for many reasons, including not reflecting well-being, leaving out the costs of environmental pollution, and not counting unpaid work, but on purely economic terms it has been mostly accepted as an indicator of economic performance. In recent decades, however, GDP has diverged dramatically from economic trends such as employment and median income. This book argues that GDP is flawed even as a narrow economic indicator, and traces the problem to the way financial services are measured.

The first part of the book is a political history of the practice of national accounting from its beginning in the mid-17th century to present day, and explores how such income estimates were constructed for political reasons. The Financialization of GDP presents the practice of estimating national income as a historically and political contingent craft - driven by power and not only theory - culminating in the rise of the financial sector and the concomitant inclusion of financial services in GDP in 1993.. The second part of the book focuses on the treatment of financial services in national accounting and develops an adjusted measure of output (Final Domestic Product or FDP) – which treats financial revenues as intermediate inputs (or costs) to the economy as a whole. The final part of the book explores the empirical and policy implications of treating finance as an overall cost to the economy.

This volume shows that the Great Moderation of volatility was a statistical artefact; Okun’s Law (relating changes in output and unemployment) never died, and even provides early signs for the Great Recession which analysts using standard GDP did not see. This book is of great interest to those who study political economy and macroeconomics.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

Gross Domestic Product (GDP) and other statistics based on national income accounting are ubiquitous but rarely understood today. GDP has been criticized for many reasons, including not reflecting well-being, leaving out the costs of environmental pollution, and not counting unpaid work, but on purely economic terms it has been mostly accepted as an indicator of economic performance. In recent decades, however, GDP has diverged dramatically from economic trends such as employment and median income. This book argues that GDP is flawed even as a narrow economic indicator, and traces the problem to the way financial services are measured.

The first part of the book is a political history of the practice of national accounting from its beginning in the mid-17th century to present day, and explores how such income estimates were constructed for political reasons. The Financialization of GDP presents the practice of estimating national income as a historically and political contingent craft - driven by power and not only theory - culminating in the rise of the financial sector and the concomitant inclusion of financial services in GDP in 1993.. The second part of the book focuses on the treatment of financial services in national accounting and develops an adjusted measure of output (Final Domestic Product or FDP) – which treats financial revenues as intermediate inputs (or costs) to the economy as a whole. The final part of the book explores the empirical and policy implications of treating finance as an overall cost to the economy.

This volume shows that the Great Moderation of volatility was a statistical artefact; Okun’s Law (relating changes in output and unemployment) never died, and even provides early signs for the Great Recession which analysts using standard GDP did not see. This book is of great interest to those who study political economy and macroeconomics.

More books from Taylor and Francis

Cover of the book Reading Witchcraft by Jacob Assa
Cover of the book Exploring Classroom Discourse by Jacob Assa
Cover of the book The Protestant Ethic and the Spirit of Capitalism by Jacob Assa
Cover of the book Family Abuse and the Bible by Jacob Assa
Cover of the book Acts of Modernity by Jacob Assa
Cover of the book Introduction to Human Memory (PLE: Memory) by Jacob Assa
Cover of the book The Tibetan Independence Movement by Jacob Assa
Cover of the book Chinese Economists on Economic Reform - Collected Works of Du Runsheng by Jacob Assa
Cover of the book Methods of Metaphysics by Jacob Assa
Cover of the book Handbook of Counseling Military Couples by Jacob Assa
Cover of the book Big Data for Qualitative Research by Jacob Assa
Cover of the book Media & Entertainment Law by Jacob Assa
Cover of the book Beyond Names for Things by Jacob Assa
Cover of the book Japonisme in Britain by Jacob Assa
Cover of the book Valuing Disabled Children and Young People by Jacob Assa
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy