Economics News with a Historical Perspective
August 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.
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U.S. Budget Deficit
In the News
The Phillips Curve
John Cochrane uses very similar Phillips Curve charts to review recent history and current issues.
Euro Roller Coaster
The wild ride continues.
The latest news and views.
Bank Failures Cause the Great Depression
The monetarists' explanation for the Great Depression focuses on changes in the money supply. In this case, the changes were not the result of a deliberate policy experiment, but were instead the outcome of a lack of Federal intervention in the banking sector at a time when conditions for banks were quite perilous.
Stock Market Crash Causes Depression
October 29, 1929. Panic in the stock market by itself has little effect on the overall economy. The potential effect on physical investment in plant and equipment is, however, enormous.
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?
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.
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