factual
National Income deflator is preferred over CPI
Using the National Income Price Deflator rather than the CPI addresses the standard criticism that inflation is overstated—the deflator accounts for substitution bias and shows less inflation than CPI—so the modest 1.4% annual real growth figure already incorporates a conservative inflation correction.
factualpending
Speaker
Gabriel ZucmanEvidence Quote
“we already take into account one standard important criticism that's been addressed to this literature[?], which is, 'Oh, no; you understate real income growth because you have overstated inflation.'”
Created: 6/13/2026, 12:26:44 AM
My Notes
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