The Econ Review

Economics News with a Historical Perspective

October 21, 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.

About The Econ Review

Address comments to



U.S. Payroll Employment

Commentary on the latest U.S. payroll employment figures 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.


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.


Stock Market Crash 1987

October 19, 1987.  The stock market crashed as the Dow Jones average fell a greater one-day percentage than on Black Tuesday in 1929.  In one day, the Dow Jones average lost 22.6% and the S & P 500 lost 20.5%, wiping out $1 trillion in market value in a single day.



The Mundell-Fleming Model

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.

copyright 2007