So What ARE the 'Fundamentals'? And Are They Good?
September 16, 2008 9:20 AM
A simple question I put to some nonpartisan economic experts.
Free from politics, when people generally talk about "the fundamentals" of the economy what do they mean?
And are they good?
"One definition," responded one, providing
THIS LINK and this definition: "A very broad term which includes such economic measures as interest rates, the government’s budget deficit, the country’s balance of trade account (relating to exports and imports), the level of domestic business confidence, the inflation rate, the state of (and confidence in) the banking and wider financial sector and consumer confidence."
"By this definition, things aren't so good," the expert said.
Another said, "To which we might add health of job market, value of home prices and stock prices (which have the greatest impact on household wealth) and ability of wages to keep up with prices -- these fundamentals are also not good."
- jpt