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ECLAC Methodologies/ Index numbers and their relation to the economy

The publication Los números índices y su relación con la economía (available in Spanish only), summarizes the links between price and volume index numbers and microeconomic theory, presents recommended formulas for international measurements, and explains how to use them in international price and volume comparisons.

4 de setembro de 2018|Nota informativa

Index numbers constitute the basic instrument to synthesize economic statistics so that the formulas used allow to express and describe, for example, the economic growth of a country or the inflation rate of an economy, and to make international comparisons. If different formulas are used, the results differ, and the comparisons are not valid. Hence the importance of knowing the formulas that are used and promoting common practices that harmonize and standardize measurements. Although index numbers are linked to macroeconomics, its theoretical foundation is based on microeconomics.