Economics News with a Historical Perspective
May 24, 2013
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.
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 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.
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 macroeconomic models in the Classic Economic Models collection trace the historical evolution from the Classical Model of Production and Employment through the Keynesian and Mundell-Fleming Models and including some items from the new classical and new Keynesian schools of thought.
Additional models of interest are available at Classic Economic Models.
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