2017/10/20. One opinion:GDP growth doesn’t mean wage increase nor price rise.
From GDP calculation formula, there are 4 patterns of GDP movement.
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Cash flow
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Higher speed
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Lower speed
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Bigger
|
GDP increase
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Zero
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Smaller
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Zero
|
GDP decrease
|
This matrix may be too simple to explain GDP & cash flow...
But cash flow has enough higher speed & bigger, GDP will be increased.
In Japan, I think that cash flow gets smaller, but higher speed by finance.
This is just effect of stimulate by low interest rates money.
In fact, the cash flow gets smaller, this is problem, not speed.
If cash flow gets smaller, what does it mean?
I think that the company or country economy will be ending.
So why GDP growth doesn’t mean wage increase nor price rise is that the economy is ending, and we cannot stop the ending by stimulate.
In addition, I think that lower interest rates by Japan will be benefits for China.
I can’t explain this opinion well...