Here’s what is driving economic growth

by pdxblake

Here's what is driving economic growth

The scale is “relative to the level at the peak” (so 0.0 is the point when the economy was running at full capacity). Two observations: 1) Most of the components of aggregate demand look like the familiar trough of a recession except for….SOCIALIST OBAMA IS BIG GOVERNM….or not; 2) A frequent criticism of Quantitative Easing is that it is “debasing the dollar”…however, if the dollar was debased less (and it wasn’t devalued much), the strongest component–exports–would have been weaker because a strong dollar makes our exports more expensive for the countries who are importing them which….um….lowers demand for our exports. (via Mark Thoma via Brad DeLong)