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I was under the impression that only banking fees were included in GDP for lending.

What you describe looks like more money creation in our fractionnal banking system, am I wrong?

by Laurent GUERBY on Sun Jun 25th, 2006 at 12:22:54 PM EST
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I would maintain a primary economic activity of banks, considered generally, is to make loans.  If it isn't economic activity I'm bewildered as to what else to call it.  But I'm not going to be dogmatic about that or how financial transactions are measured within GDP calculations as I don't think GDP means diddly - Self-Referencing the Subject line of this thread.  ;-)

She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre
by ATinNM on Sun Jun 25th, 2006 at 12:42:41 PM EST
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Only banking income (i.e. fees and margins - i.e. not the whole interest rate) is counted in GDP.

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (etg@eurotrib.com) on Sun Jun 25th, 2006 at 01:03:12 PM EST
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Thanks Jerome!
by Laurent GUERBY on Sun Jun 25th, 2006 at 01:23:08 PM EST
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