Finally, we would note that 2-percent inflation combined with 2-percent or 3-percent real growth coming from labor force and productivity growth implies a 4-percent to 5-percent nominal GDP growth world. Alternatively, zero inflation with the same real growth potential implies nominal growth below 4 percent, which seems to be the lower threshold for normal US economic performance.
Why would a higber nomin be a positive thing if the growth can simply be attributed to inflation anhwahs? Wouldnt we strictly care about real economic growth?
