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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: pater tenebrarum who wrote (58591)1/17/2001 12:06:48 PM
From: Moominoid  Read Replies (2) of 436258
 
If nominal output is increasing at 6% and inflation was really 10% as stated in the article you posted then real GDP must be declining at 4%. I just can't believe that last figure and therefore the inflation number can't be that high. Inflation might well be understated by 1% a year say and that will over time add up to a big difference in social security payments etc. but it clearly isn't understated by 7% per year.

Note that it is the individual savings rate that has fallen so low. The saving is going on in the corporate sector (and very recently in the government sector).
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