How low can America grow? | Free exchange | Economist.com - The Diigo Meta page

• 26 May 08
  

  Jason Welker

  A question I have been pondering is whether slow GDP growth combined with high inflation actually means that negative GDP growth. In other words, with GDP growing around .2% and the price level at around 4%, is the US actually experiencing negative real GDP growth of -3.8%? According to this blog post, NO:
  
  "it's not true that high inflation means real output growth is negative, since the GDP figure quoted is itself a real figure. (Although many observers, like Barry Ritholtz, believe that official inflation numbers are understating inflation). But discussions about whether a recession might be u-, or v-, or curlicue-shaped seem a bit off at the moment. Instead, the economy is essentially flatlining just a hair above zero growth. "

  economics inflation recession GDP

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