Limitations of GDP as an Indicator of Welfare

Gross Domestic Product (GDP) is essentially an indicator of aggregate economic activity. In addition to that it is also frequently used to describe social welfare. The idea behind this is that GDP tends to correlate with consumption, which in turn is commonly used as a proxy for welfare. In other […]

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Gross Domestic Product (GDP)

The Gross Domestic Product, also known as GDP, is arguably the most common indicator to describe a country’s economic performance (see also the world’s top 10 countries by GDP). Generally speaking, it measures the total value of all goods and services produced in an economy over a set period of […]

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Good Deflation vs. Bad Deflation

Deflation is often considered a highly unfavorable phenomenon. Although the idea of falling prices may seem appealing (at least from a consumer perspective), deflation is mentioned among┬áthe worst things that can happen to an economy. However there are different types of deflation that have different implications. In other words, the […]

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Do We Really Need Economic Growth?

The principle of economic growth has become quite controversial in recent years. While many economists perceived the necessity of growth almost as a dogma, critics have become increasingly numerous. Since the global economies are continuously overexploiting natural and non-renewable resources, the idea of unlimited economic growth seems to be doomed […]

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