Jim wrote: > To really "inflate" the US economy, the FIRE > sector has to grow relative to GDP. Has that sector been rising > relative to GDP?
If FIRE (the level) is large relative to GDP (and it must be around 20%), deflating FIRE deflates the whole economy. FIRE has a lot to do with the state of the rest of the economy, as we are about to witness when the financial meltdown reacts back on the rest of the economy. The difference in growth rates matters, but over the longer run. (I really don't know what the "financialization hypothesis" says.) _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
