I'm told by those in the know that "expectations" were for the Q4 GDP numbers to stay the same upon revision as with their initial 2.8 percent reading. I don't know why people expected that, lately revisions to economic data have all been upward revisions and you'd expect estimation errors of this sort to be systematically correlated. And indeed they were. Upon revision we're now looking at three percental annualized growth in the forth quarter of 2011, which would be an extremely solid number in a non-depressed economy but counts as merely "okay" given the circumstances. Still it shows that Recovery Winter is well on track if you look at all the data.
Particularly interesting for the market monetarists in the house is that nominal GDP was revised up from a pathetic 3.2 percent to a still-disappointingly-weak 3.9 percent. That's a powerful reminder that there's still plenty of room for monetary stimulus out there.
TODAY IN SLATE
The Right Target
Why Obama’s airstrikes against ISIS may be more effective than people expect.
The One National Holiday Republicans Hope You Forget
It’s Legal for Obama to Bomb Syria Because He Says It Is
I Stand With Emma Watson on Women’s Rights
Even though I know I’m going to get flak for it.
Should You Recline Your Seat? Two Economists Weigh In.
It Is Very, Very Stupid to Compare Hope Solo to Ray Rice
Or, why it is very, very stupid to compare Hope Solo to Ray Rice.
In Defense of HR
Startups and small businesses shouldn’t skip over a human resources department.