“[I]t’s a big IF that soybeans futures are LONG TERM predictors at all”

That’s a quote from an Econbrowser reader who is almost uniformly wrong on all matters related to economics, but it seems useful to me to provide the empirical evidence on futures as predictors, especially as noted in a recent post rising commodity prices have put upward pressure on inflation rates. Further, with the efficiency of futures markets might have changed over time, with greater financialization.

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GDP vs. Human Development Index: US, China and Norway

Several commentators (e.g., [1] [2])  keep on taking me to task for citing GDP as if it was the variable of ultimate concern. I have repeatedly noted GDP is a measure of economic activity, not a measure of economic welfare. However, in order to deter these repetitive and sometimes sententious comments, I’ll provide some graphs to illustrate the difference between a measure of economic activity, and a measure of welfare.

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