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Commentaries — March 19, 1999

Understanding the Financial Markets in 1999 Part 2 – What Drives Nominal GDP? In part 1 we argued that nominal GDP is a better measure for determining the proper level of interest rates than inflation alone. In this commentary we detail our belief that the stock market, via the “wealth effect,” is the primary driver… Continue reading Untitled

Open Understanding the Financial Markets in 1999
Part 2 – What Drives Nominal GDP?
In part 1 we argued that nominal GDP is a better measure for determining the proper level of interest rates than inflation alone. In this commentary we detail our belief that the stock market, via the “wealth effect,” is the primary driver of nominal GDP.