BIS Review 5/1997  -5-  The evidence that inflation has been slower and that real growth has been faster than the official measures indicate is welcome, in part because it suggests that the nation’s current level of economic well-being is higher than we had thought.
But I want to make clear that revising our historical estimates of real growth to incorporate better price data would have no material effect on measures of the degree of resource utilization, because such a revision implies faster growth in potential output, as well as actual output; accordingly, it does not alter the relationship between resource utilization and inflation.