GDP can grow very rapidly, and be an illusion,
because productive capacity can be built up in areas no one wants, like Japan in the late 1980s.
When that happens, and the price spikes, the spike can't be dampened in the near term by supply increase
because the productive capacity has already been destroyed.
Not exact matches
Those investments actually allow the central bank to take its time raising interest rates
because those new workers and additional
productive capacity will offset inflation pressures.
The uncertainty around potential output remains high
because it is not clear how much
productive capacity will ultimately be rebuilt as the economy strengthens.
In the last decade
productive land the size of the twelve countries of the European Community has been turned to dust
because carrying
capacity has been exceeded.