Quote:
Originally Posted by VTHokieFan
will lop off .2-.3 percentage points of economic growth? I take the Austrian view that an economy is too complex to statistically analyze. People need to realize that prices-in-dollars are not a measure of value, they're an index.
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The hike in prices tends to pull money out of the economy. It makes everything more expensive. Prices in dollars are an index, but it is that we get payed in dollars as well and if more of our money goes overseas without an increase in utility to match it we are all worse off.
You may not be able to analyze it but you can feel the effects. There will be a lag but it will slow down the economy. you may not be able to point to the slow down and say it was this or it was that, but slow down it will.
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