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"Time for Nominal Growth Targets," Project Syndicate, Dec.16.
E.g. "Is it Time for Nominal Growth Targets?" The Guardian, UK, Dec.17, 2012.
The agency said it now expected nominal growth of 0.4percentt, compared with its previous projection for 0.8percentt.
"Our nominal growth today is lower than our real growth, by a full percentage point," he said.
But since nominal growth is even slower, China's debt-to-GDP level continues to rise.
The expansion was led by domestic demand, which contributed two-thirds of the nominal growth.
Deflationary expectations have to be eradicated to get nominal growth back up.How to do that?
For the budget numbers, the focus always goes onto nominal growth.
The government estimates the rate of nominal growth in the 2012 second quarter at 3.1 percent.
Unemployment exacerbates deleveraging at least as much as deleveraging exacerbates unemployment.The government's ability to affect real growth is constrained, but real growth is highly correlated with nominal growth, and the government's ability to influence nominal growth is absolute.
If it has, then expectations for the nominal growth rate of corporate profits should fall in line.
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