STEFAN AVDJIEV, Bank for International
Settlements (BIS)
Email: stefan.avdjiev@bis.org
MARY EVERETT, Central Bank of Ireland
Email: mary.everett@centralbank.ie
PHILIP R. LANE, Trinity College (Dublin) - Department of Economics, Centre for Economic Policy Research (CEPR), Central Bank of Ireland
Email: plane@tcd.ie
HYUN SONG SHIN, Bank for International Settlements
Email: hyunsong.shin@bis.org
Email: stefan.avdjiev@bis.org
MARY EVERETT, Central Bank of Ireland
Email: mary.everett@centralbank.ie
PHILIP R. LANE, Trinity College (Dublin) - Department of Economics, Centre for Economic Policy Research (CEPR), Central Bank of Ireland
Email: plane@tcd.ie
HYUN SONG SHIN, Bank for International Settlements
Email: hyunsong.shin@bis.org
As
the global economy becomes more integrated, there is a growing tension between
the nature of economic activity and the measurement system that attempts to
keep up with it. Many policies are still determined by measuring economic
activity at the national level. Since the typical unit of analysis is the
economic area (the “island”), economic activity is measured within the island
and in terms of transactions between islands. But, increasingly, companies and
their ownership are global, with economic activity taking place in a
geographically dispersed way. We analyse several important issues created by
this tension, show how they manifest themselves in the data and draw lessons
from them.
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