Mushy peas and measuring the economy

Every month there is a torrent of macroeconomic data for the city scribblers to unwind and analyse. It was once said that God invented decimal points to make macroeconomists look interesting! This feature on the BBC news site is welcome because it reminds us of the wide margin for error when calculating huge numbers such as a nation’s gross domestic product. Policy making is difficult enough without the drag of using inaccurate, incomplete and out-of-date information on the economy.

“Counts and measurements swamp the news - of everything from the growth (or slump) of the economy to the extent of yobbish behaviour. They’re often reported as if straightforward child’s play, like counting your toes. That couldn’t be more wrong - the world is a massive mess; the task more like counting an ocean of mushy peas.”

The rest of the article is here