Per person income is 50 percent higher in Emilia Romagna than the national average.
GDP is a macroeconomic measure with only a tenuous relation to microeconomic well being.
I agree that GDP (unless there's a factor of 10) is a very poor indicator of well-being (unsurprisingly since it was invented to measure things for monetary policy purposes :).
If I, in my role as a Money Market Bank, lend you $100 million and you, in your guise as a Financial Investment Firm, lend it to Jerome, in his guise as an oil investment banker, who lends it back to me total GDP has risen by $300 million even tho' no economic activity has taken place.
Maybe our monetary theory is fucked up because our monetary system is fucked up. guaranteed to evoke a violent reaction from police is to challenge their right to "define the situation." --- David Graeber citing Marc Cooper
M2 is M1 plus time related deposits.
M3 is the total estimated (WAG) amount of a currency in existence in any form.
The CB can interject extra money into the system at each of the 3 levels although the national Treasury and Mint usually have oversight and control of M1. Whether a CB uses M2 or M3 depends on the policies (goals) and the situational analysis and decision making processes of the various CBs.
(And you thought I couldn't drag in Epistemology, huh? :-)
What you describe looks like more money creation in our fractionnal banking system, am I wrong?
