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How much of that was due to inflation? Remember these numbers are nominal GDP. So if price levels doubled and nothing else changed, GDP would more or less doubl
by bko 5y ago
How much of that was due to inflation? Remember these numbers are nominal GDP. So if price levels doubled and nothing else changed, GDP would more or less double as consumption went up due to higher prices.
The worrying thing is there are no monetary levers available without the risk of higher inflation. And if people don't think GDP matters, its actually a very good indicator of all sorts of well being measures such as unemployment and premature deaths among other things
[EDIT] This is real GDP. I was mistaken
- mtoner23 5y agoThis is real gdp
- jlmorton 5y agoNo one reports nominal GDP changes. BEA reports real GDP changes using the GDP implicit price deflator.
- bko 5y agoYou're right. My mistake. I'll write an edit
- Danieru 5y agoGDP is always reported as "Real GDP" with the inflation taken out. In fact the need to survey inflation to calculate GDP is the primary motivator for surveying inflation in the first place. Surveying for inflation is a ton of work, but its worth it to know GDP.
- beamatronic 5y agoI believe there are many monetary levers that can be pulled at any time. They all revolve around government holding back business. For example, restrictions on building houses. Government needs to get out of the way of productive people.
- deleted 5y ago[deleted]