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In war time, the economy appears to stall, since the growth is concentrated in war-related products which do not influence indicators like the consumer price in
by ramchip 16y ago
In war time, the economy appears to stall, since the growth is concentrated in war-related products which do not influence indicators like the consumer price index. After the war ends, the industry goes back to normal and the CPI `catches up', making it look like the war boosted economic growth.
That's how we explained it when I studied economics, at least IIRC.
Edit: just noticed the website name. "The Christian Science Monitor". I feel slightly cheated.
- gjm11 16y agoI don't think the performance of the stock market varies depending on whether the person reading the numbers is a Christian Scientist. If it did, that would be even more remarkable and weird than if Christian Science were correct in, e.g., its claims about disease. (For the avoidance of doubt: No, I am not a Christian Scientist.)