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  • Economic Growth=inflation (so says my economics professor)

    My economics professor keeps saying economic growth causes price inflation. Something about this does not make sense to me. If the economy is more productive, then the supply of goods is greater, so would not prices (assuming the money supply is stable) actually drop? He would argue that it is aggregate...
    Posted to Economics Questions (Forum) by tcostel on Thu, Mar 17 2011
  • Is GDP useless when measuring production?

    I have been reading Hazlitt and he makes a very interesting argument about GDP: that it cannot rise unless their is inflation. Even Real GDP would not work. Real GDP attempts to take inflation out of the equation (meaning the monetary supply would be static). But if the monetary supply truly was static...
    Posted to Economics Questions (Forum) by tcostel on Tue, Feb 8 2011
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