article thumbnail

“Interpersonal Connectedness” One Factor in Metric to Replace GDP

Michael Lee Stallard

In “ The Rise and Fall of GDP ,&# that appeared in The New York Times Magazine, Jon Gertner describes this effort. why is everyone smiling? why is everyone smiling? why is everyone smiling?

GDP 170
article thumbnail

What Has the Eurozone Learned from the Financial Crisis?

Harvard Business Review

Back in January 2009 European officials assumed that the crisis was purely a U.S. This assumption could not have been farther from the truth; a recession started in Europe in the first quarter of 2009, just a couple of months after it hit the U.S. But GDP fell so much that the actual effect was to push up the ratio of debt to GDP.

Crisis 8
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Greece Needs to Be Honest About the Numbers

Harvard Business Review

Georgiou’s crime was that back in 2009, he strictly applied globally accepted international rules in reporting the Greek government’s budget deficit, which had the effect of increasing it by just under 3% to a whopping 15% of GDP. You would be wrong. Calculating this debt in “present” (i.e.,

GDP 8
article thumbnail

Financial Fears, Flows, and Globalization

Harvard Business Review

For capital flows, the historical data suggest that policymakers should start paying attention when the absolute values of capital accounts add up to 3% of GDP and start getting worried when they exceed 4%. in 2009, before rising to 4.2% in 2009, before rising to 4.2% in 2008 to 3.9% in 2010 with further increases forecast.

article thumbnail

The Fiscal Cliff Is Just a Long-Overdue Hangover

Harvard Business Review

US annual GDP is just over $15 trillion. trillion) over ten years is just over seven percent of one year's GDP. But the actual cut for 2013 is a tenth of that figure, less than one percent of GDP, each year, over ten years, which is far less dramatic. The media tends to downplay that these cuts would be spread over ten years.

GDP 10
article thumbnail

Fixing the World's Infrastructure Problems

Harvard Business Review

In Jakarta, from 2005-2009, the number of cars rose by 22% annually, while the distance of usable roads actually declined (PDF). of GDP (PDF) is necessary to raise infrastructure in the region to the standard of developed East Asian countries. an estimated $100 billion per year. There are three routes to getting there: 1.

article thumbnail

There Will Be Oil, But At What Price?

Harvard Business Review

We counter that managers who would see their businesses survive the next few decades of extreme economic volatility will need to develop some literacy about oil and its complex relationships with the economy. We have ample historical evidence that when petroleum expenditures reach 5% of GDP, recession typically follows.

Price 9