How slow can you go?

What is the “stall speed” of an economy?

Unemployment tends to rise when GDP growth falls below about 2.5-3 per cent

The stall speed is the critical growth rate below which an economic upswing turns first into a period of much slower growth, and then shortly afterwards into a recession.

Gavyn Davies blog June 15, 2011

Detta förefaller mig vara en omformulering av Marian Radetzkis enkla men viktiga påpekande:

Tillväxt i BNP minus ökning i produktivitet minus ökning i arbetsstyrkan = förändring i arbetslösheten.

Much like Joseph Stiglitz: The U.S. economy must grow at least 3 percent to create enough jobs for new entrants into the labor force

RE:
And when unemployment rises everybody becomes more pessimistic and therefore spends less,
voila!

http://internetional.se/emurad.html#stall

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