Graph shows the GDP movement during economic downturns in the US, Russia and Indonesia
GDP movement of 3 major economic downturns
Club Troppo
Fearlessly dispensing political, legal and economic analysis (and some whimsy) since 2002
How do you measure GDP of a central-planned economy? What does the figure mean?
How to compare with what is effectively a new structure of economy after the central planners have changed their strategy?
Hi Tel_,
the usual method, as I understand it, is for the statistical agencies (including the CIA and the Soviets themselves) to calculate national product (production times prices) and then to styart adjusting accross countries and to adjust for take-up rates (no point counting things produced that are not consumed), etc.
Angus Maddison has a whole website and several books devoted on the issue, calling macromeasurement an ‘art’. See http://www.ggdc.net/maddison