Friday, February 17, 2017

Having it both ways

Scott Sumner:
Another example is that “decade of stagflation;” the 1970s.  The only problem with this commonly held view is that the 1970s were not a decade of stagflation; rather we saw an extraordinary surge in aggregate demand:

NGDP growth averaged:  10.4%
RGDP growth averaged:   3.2%

Growth was normal, and inflation was very high.
Scott Sumner:
... the neoliberal reforms after 1980 helped growth...

... growth was slowing almost everywhere in the 1970s and 1980s...

I am not denying that growth in US living standards slowed after 1973...

No comments: