Jeffrey Frankel — “China’S Q3 Gdp Reportedly Slowed To 6.5%. Or Is It 6.4%?”

One matter that interests me inwards the reports is a exceptional (very wonkish) detail. For the U.S. of America in addition to nearly other countries, the quarter’s gross domestic product is routinely reported relative to the preceding quarter, non relative to 4 quarters ago. Why create the media in addition to markets routinely focus on the 1-quarter increment charge per unit of measurement for the U.S. of America simply focus on the 4-quarter increment charge per unit of measurement for China?

It is non because China’s National Bureau of Statistics fails to brand the 1-quarter alter available. It’s at that spot inwards footnote ii of the NBS press release, every mo usual. The publish for the tertiary quarter relative to the 2d quarter is 1.6 per cent; to limited that inwards damage comparable to U.S. of America increment numbers, it is 6.4 % annualized. In other words it is slightly lower this fourth dimension than the 6.5% publish everyone is focusing on.

This puzzle is a illustration for behavioral finance. When the statistical means has a exercise of putting the 1-quarter or 4-quarter publish at the overstep of the press release, that is the publish to which the wire services, the residuum of the media, in addition to fifty-fifty the fiscal markets pay attention....

Framing.

Econbrowser
“China’s Q3 gross domestic product Reportedly Slowed to 6.5%. Or Is It 6.4%?”
Jeffrey Frankel, Harpel Professor at Harvard’s Kennedy School of Government, in addition to formerly a fellow member of the White House Council of Economic Advisers