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This is a stupid comparison. It is comparing flow vs. storage. This is comparing Joules to Watts. It isn't even wrong. The Mexican economy generates $1 trillio
by ucaetano 8y ago
This is a stupid comparison. It is comparing flow vs. storage. This is comparing Joules to Watts. It isn't even wrong.
The Mexican economy generates $1 trillion of value per year.
The Norway Sovereign Wealth fund has $1 trillion in capital.
Over the past 2 years, it seems that Norway's fund generated an average return of about 10% a year.
That means Norway's fund is "equivalent" to a $100 billion GDP country, about 1/10th of Mexico.
- digi_owl 8y agoSadly this stock/flow confusion is rampant in economic thinking...