However, since much of an economy's productive assets are not included in traditional accounting, standard estimates of savings can mislead.

But few economists deny the symbolic or the practical importance of the bank's radical departure from traditional national economic accounting.

The overall effect of these new arrangements is the same as it was under traditional accounting but there are important differences also.

Money does not support the traditional double-entry accounting and is based on separate cash, bank, investment, and other accounts.

Why is traditional accounting not needed?

In traditional accounting, no depreciation charge is made for the loss of such assets, contrary to the practice on man-made capital equipment.

That practice, which is endemic, distorts prices and plays havoc with traditional accounting, critics say.

Under traditional accounting, companies book profits only as they deliver the services they have promised to customers.

But the idea is a radical departure from traditional accounting.

Inventory is seen as incurring costs, or waste, instead of adding and storing value, contrary to traditional accounting.