A brief explanation of how GDP is calculated, to lay a foundation for the next two posts.
Tag: productivity
It’s now been 16 weeks of posting every Friday, and I’ve reached the end of a series of posts setting out some fundamental concepts. I…
This is an extra blog post – it doesn’t fit into the regular flow of 500-word Friday blog posts explaining how the economy works and…
Over the last 2 weeks I have given a brief overview of financial assets and their vital role as the main form of saving in…
Last week I introduced financial assets, and pointed out that purchasing these assets is in fact a way to save. Most assets actually represent a…
Decisions about who to allocate credit to, and how much credit to allocate, are absolutely fundamental to the path the economy takes in the future.…
In the last 2 weeks we’ve seen that to have an economy with increasing productivity we need investment (which we’ve defined in economic terms) and…
Last week I used a model of a very simple economy – cash only, no innovation, nothing ever changing – so that we could see…
If we want to produce enough for everyone, we need to invest in that productivity, and therefore we want our savings (i.e. our pensions) to be channelled to productive investment.