Reflections On National Accounting

This article consists of a description and critical analysis of two important works on national accounting which have appeared fairly recently—see footnotes 1 and 2. There are fundamental differences between the systems of accounts proposed in these two works, the author tending to prefer the Ruggles system. While full of admiration for the thoroughness and other qualities of the new SNA, the author finds the system it proposes over‐elaborate as a programme for national statistical offices. In his view decision as to which is the “best” system is still wide open, despite the acceptance of the new SNA by the UN Statistical Commission. In the article there is bare mention of a new (1972) book Economic Accounts and Their Uses by J. W. Kendrick which the author has since read. All three works help in determining the best practical system of accounts. It is hoped that this article (in its small way) will also make a contribution The subject of national accounts at constant prices is not dealt with at all in any of the three works despite the fact that it has received considerable attention at various meetings of IARIW. Accounts at constant prices and their concomitant price indexes are more important in these days of the curse of inflation than are accounts at current prices. Of course the new SNA deals with items at constant prices but the author finds the treatment rather inadequate. It is satisfactory that the new SNA provides for input‐output but the author agrees with the Ruggles view that the textual treatment in SNA is somewhat incomplete. The article gives the author's views on many other topics relevent to national accounting (which encompass all economic statistics!) including price index number making, inaccuracies in data, delays in availability of so‐called “current” statistics, and treatment of financial intermediaries.