9 ms·
Didn't really get some of that. I guess I need to brush up on my economics terms and concepts.
by vram22 9y ago
Didn't really get some of that. I guess I need to brush up on my economics terms and concepts.
- eru 9y agoEither that or I mixed up some terms. Happy to try and explain more.
- vram22 9y agoPlease do: >The banking crisis might have caused a recession, but what turned that recession into The Great Recession in Europe and the US was too tight money: nominal GDP just fell off a cliff. Was going to ask what nominal GDP is, but googled it, it seems it is GDP without being adjusted for inflation. Okay. By "too tight money" do you mean less money available for business investment, or higher interest rates for borrowing it, or something else? >India was further away from the dreaded 'zero bound' on interest rates, and never had any problem generating enough nominal GDP. (India's problems are with the real part of the economy. So they are producing too much inflation.) Okay, this second paragraph seems to indicate that nominal-GDP-wise, India was okay, but it was not okay after adjusting the GDP for inflation?