[PEN-L:8233] Re: Re: Re: information revolution?

[Doug Henwood <dhenwood@xxxxxxxxx>]

Brad De Long wrote:

>>Are they using "real" growth here? Given the big drop in hardware prices,
>>small nominal growth can turn into giant real growth when deflated (or, in
>>this case, inflated).
>>
>>Doug
>
>They are real numbers. But they are (or are supposed to be) chained to
>minimize this problem.

Ok, some numbers. From 1991Q1 to 199Q1, investment in producers durable
equipment (PDE) grew 98% in nominal terms, but 126% in real terms -
compared with 51% and 28% for overall GDP, respectively. PDE accounted for
12% of nominal growth but 27% of real growth.

Doug