Economics News with a Historical Perspective
May 9, 2008
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.
Address comments to editor@econreview.com.
Opinions
The Stern Report
Commentary on the Stern Report on global warming can be found at the Economics Roundtable.
The Bookshelf
In the News
Economics Roundtable
Payroll Employment
The job loss of 20,000 is negative, but not as bad as expected. Recent History Long-Term Chart.
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.
Inflation &
Unemployment
The Phillips Curve (inflation and unemployment) is our most popular search term.
Euro Roller Coaster
Yield Curves
Yield Curves also draws a large number of page views. New: new format for yield curve charts.
Other data pages include Unemployment Rate, Federal Budget Deficit, Real Interest Rates and Inflation, and Fed Funds Rate.
Features
Stock Market Forecast 2006
Between November 1987 and January 1995, the Dow Jones Industrial Average increased at an annual rate of 10.9%. After the recent decline, the DJIA grew at an annual rate of 10.1% between January 1995 and May 2003. Is 10.9% a reasonable estimate of long run growth absent speculative bubbles?
Stock Market Bubble Bursts
The Dow Jones Industrial Average, which did not reach 4,000 until 1995, broke through 10,000 in April 1999. The 150% increase over four years represented an annual rate of increase greater than 25%. The fundamentals driving the market, unfortunately, did not support this increase, and a major decline in stock prices ensued.
Europe Adopts New Currency
January 1, 1999. After a lengthy period of debate, 11 European nations (Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain) adopted a common currency. All these nations now have a single monetary policy, a single interest rate, etc. Their collective future hinges on the value of the euro.
Models
The IS/LM Model
The IS/LM Model changes the focus from factors of production (i.e. the Classical Model) to demand for output. The equilibrating factor becomes the interest rate instead of the real wage rate. Most importantly, the model demonstrates that the economy can be in a stable equilibrium at less than full employment.
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.