The Economy: 3. Economic Growth and GDP

What is economic growth, and what happens if there isn’t any? And what does that GDP figure stand for? Tim Harford explains how and why we measure everything.

If the economy stops growing, that could mean things like job cuts, so measuring what’s going on is crucial. In this episode Tim Harford explains how the economy is measured and what is missed out. Economic historian Victoria Bateman tells us why people first started to measure this in the first place. Spoiler alert…. it’s to do with war!

Everything you need to know about the economy and what it means for you. This podcast will cut through the jargon to bring you clarity and ensure you finally understand all those complicated terms and phrases you hear on the news. Inflation, GDP, Interest rates, and bonds, Tim Harford and friends explain them all. We’ll ensure you understand what’s going on today, why your shopping is getting more expensive or why your pay doesn’t cover your bills. We’ll also bring you surprising histories, from the war-hungry kings who have shaped how things are counted today to the greedy merchants flooding Spain with silver coins. So if your eyes usually glaze over when someone says ‘cutting taxes stimulates growth’, fear no more, we’ve got you covered.

Guest: Dimitri Zenghelis, Grantham Research Institute on Climate Change and the Environment, London School of Economics

Producer: Phoebe Keane

Researchers: Drew Hyndman and Marianna Brain

Editor: Clare Fordham

Theme music: Don’t Fret, Beats Fresh Music

A BBC Radio Current Affairs Production for BBC Radio 4