Show me an economy that has performed “well” and I´ll show you that it didn´t let aggregate demand (or nominal spending) crash. Evidence from three “anglos”

The three “anglos” in question are the US, UK and Australia.

The first chart shows how real growth performed over the last 20 years.

Three anglos_1

Mean growth for the US was 2.6%, for the UK, 2.4% and for Australia 3.4%. The standard deviation (volatility) of growth were, respectively, 1.9, 2.4 and 1.1.

The next charts shows how nominal spending behaved in the same three economies. Which one did not allow spending to crash?

Three anglos_2

 

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