GDP

Lordy, a lot of tosh has been written about the most recent print of the National Accounts.

The short of it is that we are in the midst of a re-inflating mining boom. This is evident in the terms of tradc.

As a result, nominal GDP is going gang-busters.

So is real gross national income ...

GDP, which measures production, does not take account of the windfall gain that comes from the improving terms of trade.

To focus on GDP in the context of a rapidly improving terms of trade misses the point. GNI is the better measure of the state of the economy. And it is rising fast. We are not in the midst of some kind of recession.

And in case you missed it, an improved nGDP means taxes are now growing faster ...