Panama Pandemonium

Published by Anonymous (not verified) on Wed, 06/04/2016 - 6:22pm in

Panama HatsThe leak of the Panama Papers has focussed a little light on the shady world of offshore shell companies and sent the press into complete meltdown as they feed like a shoal of piranhas on the juicy details contained within.

There is a very good analogy of the situation on reddit that explains the furore. Essentially it all looks really dodgy and it looks like you've been hiding the truth from MoM. And that means MoM is going to have to investigate these things thoroughly now - even though she sort of had an inkling what was going on before.

Tax evasion is illegal and should be prosecuted with the full force of the law. Here in the UK the long rubber-gloved arm of Revenue and Customs was once feared for reaching the parts where the sun don't shine and extracting the proper dues. Stones bled spontaneously in their presence. Not so much these days as successive governments have failed to hire sufficient staff of high enough quality to keep on top of the sophisticated techniques used by the wealthy and the finance sector.

Policing the finance sector has not been much in vogue over recent decades. Perhaps now governments will look at that and start charging them the cost of containment. The Regulators and Tax collectors should have the best people, which means bidding them away from alternative roles. And that should be charged back to the industry that is creating the alternative roles. There can be no better example of the MMT principle that taxes free up real resources for other uses, than a tax on the finance industry to fund a proper enforcement regime to keep the finance industry in check.

However as the analogy above shows, many of the people using shell companies are evading no taxes at all. They are often used shielding purposes - some reasonable, some less so - and for tax planning.

So then we get onto the thorny issue of tax avoidance.

Let's be absolutely clear here. Tax avoidance is legal. Not only is it legal it is required, because otherwise none of those 'tax engineering' nudges so beloved of certain political classes would work. And we all do it. If you pay into a pension you're avoiding tax. If you pay into an ISA you're avoiding tax. If you use a work computer then you are avoiding tax. If you claim travel expenses you are avoiding tax. If you're a business investing in R&D and get credits for that, you're avoiding tax. If you decide to invest in one company rather than another based upon one being eligible for the Enterprise Investment Scheme, you are avoiding tax.

Tax avoidance is everywhere. It is legal. It is required.

The problem arises due to the political process. We don't all agree on interpretations. Almost certainly my interpretation of social security is going to be different from Iain Duncan Smith's. Tax law is a minefield of interpretation.

Ultimately whether a tax break ends up as avoidance or evasion is a political matter. Every entry in the tax code is supported by a group of people and opposed by another group. Those in the ratio 95/5 - like paying into tax relieved schemes - barely get discussed. But those where the groups are more 50/50 over a particular interpretation get debated all the time. It's when the mood changes and the majority of people are against something that action must be taken.

But that action is a matter for government and the legislature. If the representatives sense the mood of the people have changed, then they have to take action, pass a law and change something from avoidance into evasion.  Only then does it become illegal and can be stopped.

Tax has to be seen to be fair and fairly distributed. That means supported by the majority of the population and their representatives. Which is why those representatives linked to Panama are the ones that are under the most scrutiny. You can't have those setting the rules abusing them.  They must be whiter than white.

But at the same time we can't have tax lynch-mobs and self-appointed 'tax experts' going around trying to dictate what is and isn't 'moral' or 'acceptable' on their own grounds. You can't have sons held accountable for the alleged crimes of their father.  I have no more time for vigilantes in tax than I have for vigilantes in crime. There is a presumption of innocence and due process to follow for a reason. Make your arguments through the legislature.

In general excessive unacceptable tax avoidance is nature's way of telling you that your tax code is too complex and needs simplifying. It's an important check and balance on those who think social engineering via tax breaks is clever. The whole concept of tax engineering relies upon avoidance in the first place. That ought to flash warning signs, but it never seems to.

Once tax is seen to be fair, it becomes  enforceable and it can drift into the background as the 'hygiene factor' that it is.

So I agree with Jeremy Corbyn when he complains that there appears to be one rule for the rich and one rule for the rest of us. In fact the rules are ridiculously complicated and need massively simplifying so that you don't get emergent behaviour in tax. The love of complexity first introduced by Gordon Brown has been a failure and it needs reversing - however many squeals that produces from those people enjoying 'tax breaks'.

Where I part company with Jeremy is when he starts talking about tax as 'revenues', and linking them to government spending.

Although dealing with tax dodgers is vital from an equity point of view, none of it increases the government's capacity to provide services. It is a mistake to link them, and it is a hostage to fortune that will come back to bite the Labour party. They should be working to break that down rather than reinforcing it all the time.

Government's capacity to provide services is down to whether there is anything available to buy in its currency that will provide those services. If there is then government can buy them, and that will automatically create its own funding for any positive tax rate. There are no fiscal constraints on government.

If there isn't anything available to buy then government needs to look at what the required resources are currently being used for and stop that from happening. Tax is one power that can do that, but only if it stops current spending on the required resources. Taxes on savings just change what is essentially voluntary taxation into compulsory taxation.

For example if a rich person is buying property and has been evading taxes, then it is unlikely that imposing the tax on them will free up the property. Why? Because they will simply go to a bank and borrow the difference. They have the income stream to support that.

Property prices are high, not because of tax evasion, but because of an excess of borrowed money in the market chasing a supply that is being constrained by low productivity techniques, land hoarding and a lack of investment.

The idea that tax havens are somehow an El Dorado that can be used to create the new Utopia is a myth. Taxing rich people doesn't solve the root cause of the problem. It never does. Because taxes for revenue is an obsolete concept.

UK Private Debt Levels - Q4 2015

Published by Anonymous (not verified) on Sun, 03/04/2016 - 11:04pm in

And here are the Q4 2015 private debt ratios

The household sector is the only sector increasing its debt levels relative to GDP.

Source: Office of National Statistics. Private sector debt based on tables NLBC, NKZA, NNQC, NNRE, NNXM, NNWK, NLSY, NLUA, NJCS and NJBQ (Lending and securities per sector, not seasonally adjusted) scaled by BKTL (Gross domestic product at market prices, not seasonally adjusted). Data and calculations are available online

UK Sectoral Balances - Q4 2015

Published by Anonymous (not verified) on Sun, 03/04/2016 - 9:24pm in

Q4 2015 sectoral balances are now out. Sorry it's taken a while to get these published. The ONS has completely trashed their website and disabled all the access URLs for data. No doubt the team there are patting themselves on the back and virtue signalling like mad with their multi-lingual front-end with loads of accessibility features. But until I can type in a simple


then they haven't got the mashability right. Why, oh why are unique reference ids hidden in a hierarchy, eg.


Hierarchical classification is in the eye of the beholder. Use tags instead.

On the plus side when I finally did get the data, it has been extended back to 1987 once more and therefore I've extended the graphs accordingly.

The present government is well on their way to achieving their aim of restarting the financial crisis. The government deficit is dropping as households borrow more and the percentage of GDP spent on housing continues to rise. (Currently at 5.13%). When it gets above 6% for any length of time it usually ends in a private debt crisis as people over extend.

The five sector chart shows the household/corporate distinction much more clearly. The household sector is now borrowing consistently and represents 32% of the overall net lending to other sectors.

The pattern continues as the corporate sector prefers to hoard rather than invest and the government tries to push debt onto the backs of the household sector.

Source: Office of National Statistics, tables RPYH, RQAJ, RQBN, RQBV, RPYN, RPZT, RQCH, DJDS (Seasonally adjusted Net Lending/Borrowing per sector plus residual error) and YBHA (Gross domestic product at market prices, seasonally adjusted). Data and calculations are available online

The Limits of understanding of MMT

Published by Anonymous (not verified) on Mon, 29/02/2016 - 6:36pm in



I've got a good amount of time for LK's blog. It is my 'goto' blog for good sense on many a topic. But I have to say I'm somewhat disappointed at the latest missive on foreign trade. It still has the usual straw men in it. I really don't understand why PK people can't get their head around the dynamics of floating rate exchange systems and still stick to fixed exchange analysis based around apparent Kaldorian views.

Bill has already debunked the Kaldorian points in his post of a few weeks ago.

I'll take the points in LKs post one at a time.

Now MMT would work for the US, Western Europe, Australia, Japan, South Korea or Taiwan, but not for much of the Third World.

MMT works wherever it is used for the fairly obvious reason that it is a description of how a floating rate exchange system on a sovereign currency works. With the correct policy operations it is perfectly applicable to all nations.

But it is important to note that the fiscal space and the real space are separate entities. Each operates within its own sphere and the influence of the fiscal space on the real space is akin to an electrical induction circuit. Importantly there is no one-to-one relationship between the two.

As Bill's blog on world development shows, it is the real constraints on a nation that limit how prosperous it is. If you have a country with a small population and limited real resources then what it can create at full output may not be sufficient to adequately feed, house and clothe the population. No amount of financial wizardry can help sort that out and the country needs international gifts of real aid.

That is, MMT-style policies are best suited for advanced capitalist nations, not necessarily for Third World countries, because most of them face severe balance of payments constraints. Increasing aggregate demand would, for many Third World nations, simply cause a balance of payments crisis, as imports surged.

There isn't really such a thing as a balance of payments crisis in a floating rate exchange system.  For those excess imports to exist at all, the saving of the local currency must occur at the same time. Otherwise the financing of the deal would have failed and the transaction would never have happened.  And there would be no excess imports. The floating rate balances out the successes and failures automatically. That's its job.

Very simply imports cannot 'surge' unless the equivalent local currency savings by foreigners 'surges' at the same time. And if the savings don't surge then the exporter loses a sale and their economy shrinks as well - because there is nowhere else to export to in aggregate. Mars isn't open for business as yet.

Generally this entire misconception comes about by failing to analyse a transaction end to end,  and by failing to separate the transaction into a real and financial component. (Every transaction requires the real part and the financial part to be in place before they will complete). And in particular failing to model the transaction(s) coming in the opposite direction that allows the FX swap to happen in the first place.

Imagine a system where nobody in the world wants your tally sticks. You want a larger standing army which means freeing up some people from land work. So you impose a tax on the land and issue tally sticks to those who sign up to your army and those that make pointy sticks. Productivity is improved by division of labour and the army gets the spare manpower  and goods - which they then use to improve the water drainage and irrigation systems further boosting output.

Everybody is more fully employed by using the state's power to create money, but there is no 'surge' in imports because nobody wants your tally sticks outside your border. But inside the border there is a demand due to the taxation system.

Only when you have that 'reductio' clear in your mind can you get a grip on the dynamics within a floating system. Where you have drawn the border is an artificial device based on political boundaries. If you just have a dynamic border that encompasses everybody holding a denomination then it becomes much clearer to see what is actually happening.

But it boils down to this. The end buyer always gets to use the type of money they want and the end supplier always gets the type of money they want. Otherwise there will be no deal. It doesn't matter what the invoice is priced in. It doesn't matter what the currencies are. It doesn't matter where people are physically located in the world. The finance system has to make the finance channel tie up or it all stops and the deal chain collapses.

Statistics showing excess of imports or excess of exports are thus the result of successful end to end deals on both the real and financial sides. They can't be anything else in a floating rate system.

Moreover, a huge stream of imports from the developed world tend to cripple the development of a domestic manufacturing sector in developing world nations

That is simply bad policy. MMT makes the point that excess imports, if you can get them, increase the standard of living of the population. But primarily you have to maintain your domestic economy at maximum output. And that will require anti-dumping policies, equality policies and other policies along those lines to ensure that the development of your economy proceeds in a sensible manner. That would include sourcing imports from multiple competing nations to ensure diversity of supply.

As Bill's blog above also mentions: Selective import controls, if they can be effectively designed, can ensure that a nation with a limited export base can import goods and services that target the provision of benefits via imports to the poor in the first instance

There is no super powerful magic in a floating rate. It's one tool. You still have to do all the other stuff to develop an economy. But with a floating rate you will ensure that you have all your available resources fully occupied and the development should then proceed at a brisker pace. That is the key issue that always appear to get lost in these discussions.

Exports matter a lot even for some developed countries, because exports bring in foreign exchange if you can’t attract foreign exchange via the capital account

This is particularly confused in a floating rate setup. It doesn't matter which side of the fence the swaps get done on - the buy side or the sell side of the currency zone boundaries. They have to happen at the same time as the real transaction or there is no deal. The whole chain collapses.

You don't need to 'attract' anything. The process is handled via the FX system which is a swapping mechanism. Insufficient matches = no deal.

These processes all happen in parallel and in real time. Attempting to serialise the process in your mind leads to the wrong result.

Where is this idea that you don't export coming from? If you have an excess of coffee you will export it and import something more useful - like corn. Or you may export your fish and import beef - because basically you're not a fish kind of people.

I feel the missing part here is understanding the process from the other point of view. Again the focus on a particular economy rather than the world in toto leads to a skewed viewpoint. Let's look at it from the exporter's point of view.

When exporters export to excess (i.e. beyond what they buy back in imports) then they cease to be exporting in any generally understood sense. In reality they have started to import demand. And that is what a net import nation is selling - demand to a wider world that is short of demand due to export led policies. Since demand is in short supply, it is valuable in its own right.

Excess exporters simply take foreign currency, discount or swap it for their domestic currency in some way and then figuratively chuck the foreign currency in the back of a drawer - pretty much like most of us do after a foreign holiday. The whole process is in fact a way of injecting domestic currency into the excess exporters economy, but they have a foreign currency asset to make the books look better. It's that simple - and that stupid.

The feedback into the import economy is the same as any saving. A reduction in domestic flow that has to be accommodated or you get a paradox of thrift. That is rarely done due to neo-classical beliefs. So you can't use economies that are operating under neo-classical rules and have failed to support an argument against floating rate systems. That's like blaming the aircraft for crashing when the person piloting didn't know how the controls worked.

Finally, manufacturing matters – a lot.

Never understood the metal bashing argument. I work in software - which is a service business. I can license tens of thousands of copies all across the world with next to no distribution costs. That's a far more efficient way of exporting than anything real.

If you have to import your resources it doesn't really matter if you import the steel or the iron ore. You've still got a supply chain requirement. That's why I can't understand the argument for virgin steel works in the UK. We've had to import iron ore, and these days coal, for decades. In fact our steel plants can't even work on the remaining iron ore deposits in the UK because its the wrong type for the plants that have been built. So why bother importing the rock, when you can import the steel from multiple locations? UK steel works should be recycling plants.

(I understand the 'good jobs' argument, but that is similarly controversial for other reasons which are outside the scope of this post).

The secret is the same as any business resilience plan - diversity of supply. And definitely diversity across political groupings. Because the USA, Russia and China are never going to be on the same side in anything.

I certainly don't go for the comparative advantage nonsense however. You need a multi-culture.  If you can't get diversity of supply you need to create at home. There is always a trade off between resilience and efficiency to get a sustainable cohesive economy that has low-coupling with the rest of the world.

But I see little difference between manufacturing and services. It's an old fashion separation that really doesn't hold that well in a modern world.

It seems to me that effective demand is the real source of power.

If you think imports are only a benefit, look at the devastating de-industrialisation of large parts of the Western world

Again this 'only a benefit' is a strawman argument that nobody seriously looking at floating rate systems is proposing. Imports is an aggregate. What is in that aggregate? BMWs or food? What are the strategic issues of supply and creation outside your political borders vs. inside them. And similarly what are the 'beggar thy neighbour' impacts of changing the status quo? Do we really want our fellow humans in China back in paddy fields dying of starvation?

And note that this all came about because governments operated neoliberal policies that didn't understand net-importing causes a paradox of thrift effect that has to be compensated for by government action. Precisely my point above.

As Alex Douglas discussed recently, even the supposed Post Keynesians still don't seem to get the issue with savings desires.

The dynamics at the borders of currency zones is indeed complicated and there is much to learn about how to manage them more appropriately. But it would help if people stopped analysing aircraft flight as though they were driving a car. It gets a bit tiring having to point out all the time that yes you do have to pay attention to the Z axis as well.

Thursday, 11 February 2016 - 1:39pm

Published by Matthew Davidson on Thu, 11/02/2016 - 1:39pm in

I'm reluctant to contribute to the Piketty backlash, as it seems to me to be mostly motivated by the unrealistic expectation that his book should have provided a comprehensive theory of everything. However this blog post from Alexander Douglas provides such a pithy account of the workings of public fiscal balances that it's worth recirculating. In response to the claim that "there are two main ways for a government to finance its expenses: taxes and debt," he writes:

Government spending isn’t financed by anything. The government pays for everything by crediting the non-government sector (employees, companies, foreign governments, etc.) with financial claims. Some of these claims are returned to the government in order to settle liabilities to the government (for instance in tax payments); others remain as financial holdings for the non-government sector. At any given moment the claims remaining as financial holdings constitute the whole of the ‘public debt’.

Tax revenue largely depends on the volume of spending. Decisions to spend rather than save are largely at the discretion of non-government agents. It is therefore very misleading to speak, as Piketty does, as if the government chooses to ‘finance its spending’ through taxation or debt. The amount of government spending that remains as ‘debt’ is largely up to the discretion of non-government agents choosing whether to hold onto financial claims or pass them on so that they can eventually find their way back to the government.

It therefore makes no sense to panic about government "budget" deficits, if you're not also going to bemoan private savings. Ironically, as it happens, private savings currently is a big problem, as corporations hand out mattress stuffing — in the form of dividends and share buybacks — rather than investing. Yet more ironically, the appropriate response is for the government to make up the investment shortfall through large fiscal deficits. Otherwise the economic stagnation rolls on until (sorry, I can't resist it) r>g.

The Procrustean Economy

Published by Anonymous (not verified) on Mon, 11/01/2016 - 6:45pm in



In the Greek Myths Procrustes offered a unique proposition to the weary traveller. He guaranteed that whoever you were he had a bed that would fit you precisely.

Of course once the deal had been made, the reality emerged. There was just one size of bed. If you were too short you were put on the rack and stretched to fit. Too long and your legs were shortened with an axe.

So it has been with the economies across the world for decades now. They have been promised riches by the snake oil salesmen who try to pass themselves off as scientists and then rammed into a 'one size fits all' ideology, based around the false idea of equilibrium.

All the world economies have been forced to fit this peculiar bed, and have had their policies tailored to the idealised model, with the actual underlying people rammed into the structure regardless.

The consequence of this should be obvious, but seems to pass people by. The data collected from such economies will resemble the data you would expect from the model.

It really can't do much else - since the policies are there to prevent deviation from the norm. Therefore when you do empirical studies what you are actually using as data is the output from a system rammed into an inappropriate model. The data is tainted and what the taint means has to be understood.

It becomes part of the Orwellian self-referential structure that reinforces the norm - academic journals  where the peers doing the reviewing 'believe in the concept' and therefore reject anything novel out of hand, awards created by people who 'believe in the concept' and awarded to other people based on how hard they also 'believe in the concept', and data used to try and validate policies that are derived from structures that are already moulded into the form of the policies.

If you observe the movement data from a man in a straitjacket then you will form a particular view of the movement capabilities of a man. The problem is that you are neglecting to notice the straitjacket or the possibility that it could be removed.

Moreover even if you do notice the straitjacket, it is impossible to find an instance of a man without one, or to get into a position where you could remove it and see what happens.

To move forward we really need a world where the restrictions can be removed. The mainstream may have locked out the physical world with their politics and policies, but these days people have alternatives to the physical world that they can immerse themselves in.

We have virtual worlds.

UK Private Debt Levels - Q3 2015

Published by Anonymous (not verified) on Sat, 02/01/2016 - 10:18pm in

The relative debt level for the UK look like this:
Relative deleveraging across all sectors has stopped this quarter. Everybody has put on more debt than GDP growth. In particular the household sector continues to grow its debt more than GDP - albeit slowly.

Source: Office of National Statistics. Private sector debt based on tables NLBC, NKZA, NNQC, NNRE, NNXM, NNWK, NLSY, NLUA, NJCS and NJBQ (Lending and securities per sector, not seasonally adjusted) scaled by BKTL (Gross domestic product at market prices, not seasonally adjusted). Data and calculations are available online

UK Sectoral Balances - Q3 2015

Published by Anonymous (not verified) on Sat, 02/01/2016 - 10:06pm in

Here's the latest UK Sectoral Statistics. The Household sector continues to net borrow and the corporate sector continues to net save. The RoW is now saving less in Sterling per quarter than they were earlier in 2015. The five sector chart shows the household/corporate distinction much more clearly. The household sector is now into its third year of borrowing more than it is saving in aggregate, and the level of borrowing from other sectors continues to increase. The household sector is now 28% of the overall 'deficit' from the deficit sectors.The pattern continues as the corporate sector prefers to hoard rather than invest and the government tries to push debt onto the backs of the household sector.

Next quarter we get the Q4 stats, which includes Christmas. So we'll see how much of Christmas was on credit cards.

Source: Office of National Statistics, tables RPYH, RQAJ, RQBN, RQBV, RPYN, RPZT, RQCH, DJDS (Seasonally adjusted Net Lending/Borrowing per sector plus residual error) and YBHA (Gross domestic product at market prices, seasonally adjusted). Data and calculations are available online

Fixing the Floods - a Modern Money Approach

Published by Anonymous (not verified) on Thu, 31/12/2015 - 7:57pm in



Christmas didn't end with much cheer for the residents of the Calder Valley where extensive flooding has devastated homes and businesses. Hebden Bridge is just up the road from here and I spend a lot of time there during the year. We have many friends and acquaintances up the valley and the stories filtering down are heartbreaking. One of my daughter's friends, having lost her father to aggressive cancer just before Christmas, has been flooded out of their house and has had to move the funeral to Halifax Minster because the original church has been inundated.

Of course the flooding has been more widespread than just the Calder Valley. It's been across many flood prone areas of the North of England and Scotland.

The buildings in many of these areas have been uninsurable for several years and these floods will destroy many businesses and bankrupt individuals. The poor areas of Salford that have been flooded include many people without contents insurance. Their ruined stuff is now piled up in the street, and with little income the prospect of rebuilding a life is bleak.

With all this human misery around I don't have a lot of sympathy for idiot politicians and their economist lackeys coming out with nonsense statements. Both sides are as bad. The Tories for failing to invest in flood defences and pretending climate change isn't happening, and the Labour lot for either suggesting foreign aid should be cut, or trotting out their usual 'tax the rich' line as though either of those approaches will cause flood defence engineers to rise fully formed from the primordial soup.

The constant talk of numbers just demonstrates a lack of understanding of how government actually get things done.

They need to take a Modern Money approach.

What Modern Money tells us is that the state can command any resources available for sale in its own currency. And it tells us that the only constraint on what resources it can command is the inflation constraint - in other words multiple bids for the same item that causes the price to rise.

So the correct approach is to forget about the numbers. They just happen automatically as a consequence of taking action. And they always add up as a matter of accounting.  What you need to concentrate on is the engineering resources required. Where are they and what else are they doing at this point in time?

If what they are currently doing is less important than fixing flood defences, then you suspend what they are currently doing and reallocate them to fixing flood defences.

Within construction that is fairly easy because everything needs the State's permission to proceed anyway - via planning and building control. That means you can delay any project currently proposed or operating via advanced policy tools rather than using the primitive price mechanism to bid away resources.

So the State can set a price for a job, and if it doesn't get enough bids from free resources it can suspend activity around the area to free up capacity until it does get enough bids for the job. Projects are then reordered in time with the state's requirements coming first. Since the mechanism used eliminates other offers there can be no multiple bids. Therefore no change in prices and no inflation.

The real costs are then borne by the businesses whose projects are delayed and by the banks whose lending volume will drop as projects are prevented from starting due to lack of available resources. Which would always be the case however you get there.

So, with a correct Modern Money understanding, you end up with a much more precise and direct approach to resource allocation.  The correct people and stuff are found, surgically extracted and reallocated in a way that the carpet bombing approaches of 'tax the rich', 'cut foreign aid', or 'expansionary fiscal austerity' could never achieve.

In addition, by concentrating on finding the available actual resources at your disposal, you end up realising that the engineering talent within the armed forces exists and is much better deployed repairing riversides in Rochdale than rearranging the rubble in some distant land.

It's all very straightforward once you think about it properly in terms of actually getting stuff done.

UK Sectoral Balances - Q2 2015

Published by Anonymous (not verified) on Sun, 04/10/2015 - 9:47pm in

At long last the data from Q2 2015 is out. All the data streams have been adjusted to comply with the new national accounts standards, so the specific data will have changed again. The trends stay roughly the same though. The Household sector continues to net borrow and the corporate sector continues to net save - somewhat similar to ten years ago. The five sector chart shows the household/corporate distinction much more clearly. We'll see next quarter whether the household debt continues to grow as required to get the 'surplus' the government is insanely obsessed about, and if the pattern of corporate sector saving and household sector indebtedness continues to follow the previous pattern.

Source: Office of National Statistics, tables RPYH, RQAJ, RQBN, RQBV, RPYN, RPZT, RQCH, DJDS (Seasonally adjusted Net Lending/Borrowing per sector plus residual error) and YBHA (Gross domestic product at market prices, seasonally adjusted). Data and calculations are available online