Global Misery Index

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News: Congress party claimed that the Indian economy should be measured in terms of the Global Misery Index (GMI)

Facts:

Misery Index

Origin: The first Misery Index was constructed by economist Art Okun in the 1960s. It was a simple sum of a nation’s annual inflation rate and its unemployment rate. The higher the index, the more the misery felt by average citizens.

Modifications:

  • The Index has been modified several times, first by Robert Barro of Harvard and then by Prof. Steve Hanke of Johns Hopkins University
  • Hanke’s Misery Index is the sum of the unemployment, inflation and bank lending rates, minus the percentage change in real GDP per capita.
  •  A higher Misery Index score reflects a higher level of “misery.”