Monday, May 02, 2011

US Nominal Vs Real Spending

I am not going to make long speech or writing about the sustainability of US spending, but it is the driving force of "growth" again. Just one question to Mr. Bernanke who is about to embrace new real-time tests of Philips Curve. Is nominal or real growth more likely to lead to employment gains?

Click on chart to enlarge, courtesy of BNP Paribas.

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