In the U.S.A., there are big budget deficit and trade deficit. The deficit is covered by government bonds which are bought by China, Japan or oil producing Arabian countries. The U.S. dollar is the international currency (the hard currency…

After the Great Depression in 1929, the U.S.A. built some big dams to spend money and make more jobs in society. In Germany, the Nazis also constructed “Autobahn” (freeways) for picking up speed of its economy. Their government spending po…

John.M.Keynes (a British economist) insisted on making “effective demand” when economy was in depression or panic. That is why almost every country tries to increase its government spending in this world financial crisis. In such serious d…

GDP is measured by five elements. They are “private consumption,” “gross investment,” “government spending,” “exports” and “imports,” that is, GDP=private consumption + gross investment + government spending + (exports − imports) When econ…