The Econ Review

Economics News with a Historical Perspective

July 22, 2014

The Econ Review features a historical perspective on economics news and opinions with daily updates.  All original material is copyrighted.  Off-site references open in new windows.

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U.S. Budget Deficit

Discussion of the latest CBO budget projections can be found at the Economics Roundtable.


In the News

Payroll Employment

Recent History   Long-Term Chart

U.S. Budget Deficit
Bar Graph
CBO Budget Projections
Historical Data

Inflation & Unemployment
The Phillips Curve

John Cochrane uses very similar Phillips Curve charts to review recent history and current issues.

The Chart Room
Charts for GDP and payroll employment show the historical patterns in this relationship.  Custom select side-by-side charts for these variables and interest rates and yield curves.

Euro Roller Coaster
The wild ride continues.

Economics Roundtable
The latest news and views.


Mexico Peso 1994

Mexican Peso Plummets

December 20, 1994.  The Mexican government's commitment to hold the peso/dollar exchange rate fixed (within a band) came to an end abruptly on December 20, 1994.  Within 10 days of attempting to devalue the peso by 15%, the Mexican government ran out of international reserves and was forced to let the peso float.  Within 90 days, the peso had lost 50% of its value.


China Yuan Exchange Rate Policy

China Fixes Value of Yuan

January 1994.  China has maintained a fixed exchange rate for the yuan relative to the U.S. dollar since 1994.  This has recently attracted attention as some have voiced concern that holding down the value of the yuan is making the prices of Chinese exports to the U.S. too cheap.


Japan Stock Market Crash

Japanese Stock Market Crash 1989

In May 1989 the Bank of Japan began to raise its discount rate from 2.5% to counter a perceived threat of inflation.  The original rate had helped propel the Nikkei 225 index from 11,500 as recently as 1984 to about 38,900 by 1989.  The discount rate stood at 6.0% by the end of 1990, and the Nikkei index fell below 9,000 by 2002, shedding over 75% of its peak value.



The Mundell-Fleming Model

The Classical Model

The Classical Model of Production and Employment focuses on the supply and demand for a single factor of production, labor, assuming that capital is fixed in the short run.  Equilibrium in the labor market then determines the real wage rate and the level of output.  This model provides an important reference point for understanding the innovations in the Keynesian models.


Additional models of interest are available at Classic Economic Models.

Econ Clubs

Check the directory of economics clubs to see if your club is listed. Links are free.

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