Jul 28, 2010

The Difference Between 2.5% Growth And 1.5%

"Well, the potential growth is around 2.75-3%, so if we are at 2.5% probably you create enough jobs to stabilize the unemployment rate, but at 1.5% you have job losses, unemployment goes up (...) 2.5% is close to potential while 1.5% is about half as much as potential."