Re:Varoufakis to Publish Notorious Eurogroup Recordings from...
by lottin on Friday February 21, 2020 @02:39PM
(#22386058)
GDP stands for gross domestic product. As its name indicates, GDP measures the production of final goods and services. Borrowing foreign money to buy foreign goods has no effect whatever on a country's level of production and therefore it cannot have any effect on the country's GDP either.
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Re:Varoufakis to Publish Notorious Eurogroup Recordings from...
by rumanator on Friday February 21, 2020 @05:14PM
(#22387462)
> Borrowing foreign money to buy foreign goods has no effect whatever on a country's level of production
And this is where you're wrong. Borrowing money has a direct and deep impact on ta country's level of production, mainly because that cash is dumped on the economy by spending it on buying goods and services.