Aug 09
GDP = value of all goods and services produced within a country’s borders in a given year.
GDP is not the figure we should focus on. We should be looking at the Gross Net Product. What are our costs, imports & subsidies – what are our gross operating profits?
To fully appreciate what a zero inflation target – i.e. stable zero growth – would mean we need to understand:
- threats of downward cycles
- ability to stay comfortably liquid
- risk of irreversible decline
- psychology of momentum – cycles – sense of advancement – desire to progress