Great question Nick - certainly something I have in mind for a future post, probably closer to the GDP release date. In some ways the issue with GDP is same as with the CPI: we do have quite a bit of monthly data on goods, but there's a big gap in our understanding about services (and sometimes it's not clear what we mean by the 'quantity' of a service).
I think the NZAC does a good job in picking the general direction of GDP, and I like that it's a fairly simple approach rather than being a black box.
Interesting read Michael. What's your take on monthly GDP data as well? Does the NZAC effectively do the job and so should be more formalised?
Great question Nick - certainly something I have in mind for a future post, probably closer to the GDP release date. In some ways the issue with GDP is same as with the CPI: we do have quite a bit of monthly data on goods, but there's a big gap in our understanding about services (and sometimes it's not clear what we mean by the 'quantity' of a service).
I think the NZAC does a good job in picking the general direction of GDP, and I like that it's a fairly simple approach rather than being a black box.