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 Zucman

Evidence 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.'

Source

Gabriel Zucman on Inequality, Growth, and Distributional National AccountsEconTalk
Created: 6/13/2026, 12:26:44 AM

My Notes

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