Economics – Why Does the Economy Grow?

Taught by: Tomás Rotta, Institute of Management Studies (IMS) In this lecture we will look at how and why GDP grows over time and why that is counter-intuitive. We will examine how expenditures and credit creation play a central role in…

Economics - Why Does the Economy Grow?

Source

0
(0)

Taught by: Tomás Rotta, Institute of Management Studies (IMS)

In this lecture we will look at how and why GDP grows over time and why that is counter-intuitive. We will examine how expenditures and credit creation play a central role in GDP growth, and how the absence of either implies that the economy cannot grow. We will explore how the financial system creates credit without the need of savings or deposits, and how the credit creation mechanism that finances future expenditures in excess of current incomes is crucial in generating growth.

0 / 5. 0

Leave a Reply

Your email address will not be published. Required fields are marked *