Monday, August 26, 2013

Looks like a Measure of the Economy's Performance


Yesterday I concluded

So we see that when debt is relatively low, economic growth (or in this case, Fixed Private Investment) is relatively high. But when debt is relatively high, investment doesn't run higher, and sometimes it runs low.

So the next thing I want to see is Fixed Private Investment relative to Total Debt:

Graph #1: Fixed Private Investment relative to Total Debt
It looks like a measure of the economy's performance for the last 60 years.

It is.

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