......the public in general and financial market participants in particular are more sensitive to the first data release rather than the subsequent revisions. Keeping such psychological factors in mind, there seems to be an attempt by official agencies to scale down the real extent of economic deterioration during periods of major economic slowdown at the time of the first release of major macro data. Official agencies are entrusted with the responsibility to accurately report the underlying economic conditions. Deliberate attempts to conceal the real picture can lead to wrong decisions and turn a bad situation worse. It also discredits official statistical agencies.
The author is chief economist at AnandRathi Group and has served as Director of Economic Research and Policy in the Reserve Bank of India
No comments:
Post a Comment