Dean Canova Quoted in Article on Recession
February 4, 2009
Associate Dean Timothy Canova was quoted in an article in U.S. Banker entitled, “U.S. Government Data Needs a Redo.” The article discusses the nation’s economic statistics and makes the case that policymakers and business leaders need better numbers in order to ensure good outcomes in the future. Regarding inflation, Dean Canova says, “There has been an upward bias in our measures of inflation… The U.S. uses the so-called Laspeyres index, which shows what it would have cost to buy a certain market basket of goods and services in an earlier year. But consumers don’t continue purchasing the earlier basket but rather will substitute things that decline in price or go up more slowly for those products that are rising faster in price.” Canova goes on to discuss the politicization of unemployment statistics and capacity utilization numbers. Read article …