Over the 1990-2000 period, measured labour productivity in NAICS 334 grew 22.6 per cent per annum on average, and 68 per cent of this growth (15.4 percentage points) was accounted for by the decline in the industry-specific deflator
. (21) From 2010 to 2016, in contrast, that deflator
declined only 0.68 per cent per year on average, suggesting a dramatic fall in the decline in the rate of improvement of computer and electronic products.
The GDP implicit price deflator
deflates the current nominal-dollar value of GDP by the chained-dollar value of GDP.
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As time passes, the effects of nonmonetary events (velocity) on the GDP deflator
fade and the connection between excess-money growth and prices starts to predominate.
The PCE deflator
was up only 1.1 percent in the first two quarters of 2013.
Over the past three decades, the implicit net interest rate on Japan's total public debt averaged 1.5 per cent, in comparison to average consumer price inflation of 0.8 percent and average GDP deflator
inflation of 0.1 percent.
These tables use the same format and detail as Table 3, Table 4, Based on Department of Defense Price Deflator
''The fall of the GDP deflator
tends to give rise to expectations for further continuation of Japan's easy monetary policy and the Japanese government will likely resist any appreciation of the yen,'' said Masafumi Yamamoto, chief foreign exchange strategist at Barclays Bank.
An important distinction between pairing GDP with its deflator
and pairing IP with the CPI is the extent to which products in the output index are matched to products in the price index.
When specifying a VEC model with the second difference of DNFD and the first difference of the other variables, under both trend assumptions; changes in Ml, real GDP, and the deflator
Granger cause changes in the first difference of DNFD at the 10% level and generally at the 5% level.
These findings provide the basis for our estimation of a vector error-correction model (VECM) to forecast overall core PCE deflator
inflation for 2003.
Panel A of figure 2 displays the log of our measure of real marginal cost and inflation measured using the GDP deflator
for the sample 1959-2001.