Home > Uncategorized > Graph of the day. Deflation in Greece, inflation in Spain and Germany

Graph of the day. Deflation in Greece, inflation in Spain and Germany

The Greek GDP price level is falling, which will make it even harder for the Greek to pay back their debts. Deflation rears its ugly head – and the ECB has no means to combat this situation! Real GDP in Greece is shrinking at a 5,5% rate, which means that nominal GDP (and therewith tax receipts of the government) is shrinking at an about 8% a year rate – you don’t even need the back of an envelope to do the calculations. Remarkably, Spanish prices still show some increase despite a level of unemployment as high as the Greek level – one economic model does not fit all.

Here you can find some long run data on Greek inflation and money growth.

AAGreece

 

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  1. September 24, 2013 at 9:12 am
  2. June 13, 2014 at 11:54 am

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