Re: "Stock Market and the Real Economy", a reply to Clifford

[Christopher Niggle <niggle@xxxxxxxxxxxxxx>]

Colleagues:  I think that the NIPA savings concept was revised this past
year to include some such flows in the "personal savings" category.  But I
think that Clifford is correct that until recently, the NIPA saving didn't
capture such flows.  The Fed's Flow of Funds accounts give a better
measure of savings in the economic meaning of "not spending current income
on consumption."  Craig Justice wrote a dissertation and published an
article (UC Riverside) that examined some of these kinds of problems in
using the NIPA concept of saving.

Chris

On Wed, 15 Mar 2000, Edward C. Wood wrote:

> On Tue, 14 Mar 2000 09:35:51 -0500, you wrote:
>
> <deletion>
>
> >	[Clifford Poirot]
> >	I agree, at least in part, about the structural change in equities.
> >Much of this seems to be driven by the flow of money into 401K's and pension
> >funds. Curiously, this is not counted as savings in the U.S. statistics,
>
> ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
> >even though it is clearly deferred compensation, and thus money not spent on
> >consumer goods. ...
>
> The underscored phrase is astonishing, if true.  Can you cite a
> source?
>
> Regards, Ed
>
>