1. 1 The need for coherent Macroeconomic Statistics Workshop on SNA and GFS Istanbul 20-22 November 2013 Kurt Wass, EFTA

2. Coherent macroeconomic statistics Successful policymaking in a complex world requires high quality information of data Statistical systems need to address both the policy objectives and the instruments at hand that might have effect on the objectives 2

3. Coherent macroeconomic statistics Main objectives of macroeconomic policies –High, but sustainable economic growth –High/full employment –Price stability –External balance –Influence the distribution of income and wealth –Provision of public goods –Efficient allocation of resources –High private consumption 3 Main policy instruments –Fiscal policy Government expenditures Taxation –Monetary policy Interest rates Money supply Exchange rates –Supply side policy Competition, efficiency improvements, i.e.; Privatization Deregulation Free trade Tax reforms etc.

4. Coherent macroeconomic statistics Policy makers Economy In order to affect the economy policymakers need an understanding how policies might work on important economic phenomena – it is a need for: economic theories statistical data 4

5. Coherent macroeconomic statistics Policy makers Economy Economic theories Statistical data 5

6. Coherent macroeconomic statistics Example, policy objective: increase employment Labour market Households Supply Corporations Demand Government Market G & S RoW Demand Exports Imports Consumption Production Demand Taxes Transfers Taxes Dividends Financial markets Government Financial transactions Change in debt Financial transactions Central Bank Fiscal policies Monetary policies Supply side policies Financial transactions Subsid. Cap.Inj. 6

7. Coherent macroeconomic statistics Capital transfers & Non-financial assets Income accounts Production account Transactions GDP (value added) Financial assets & liabilities Saving Revenue account Expense account Financial assets & liabilities Non-financial assets Transactions Operating balance Net lending / borrowing Current account Capital account Financial assets & liabilities Current account balance Transactions Financial assets & liabilities Transactions GFS SNA ESA BoP MFS 7

8. Coherent macroeconomic statistics Although the four main sets of macroeconomic accounting statistical frameworks have different focus, they are mutually consistent and provide a coherent basis for policy making Since the different statistics are often compiled by different institutions, inter-institutional coordination is necessary to in order to ensure a coherent macro- economic basis for policy making Since statisticians should not operate in a vacuum, it is also important with a close cooperation with important users 8