The Econ Review

Economics News with a Historical Perspective

September 2, 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.


Alan Greenspan

August 11, 1987.  President Reagan appointed Alan Greenspan to his first term as Chairman of the Federal Reserve.  His fourth term as Chairman runs until June 20, 2004, and the rumor is circulating that he would accept a fifth nomination.  (PS:  Ben Bernanke was sworn in as Chairman on 2/1/2006.)


Continental-Illinois Bank "Too Big To Fail"

May 17, 1984.  Continental Illinois National Bank and Trust Company is the largest bank failure in the history of the Federal Deposit Insurance Corporation.  Resolving this crisis pushed to the forefront the "too big to fail" principle that argues in favor of government intervention to avert instability in financial institutions large enough that, were they to fail, the integrity of the financial markets could be in doubt.


Volker Causes Recession

Volker Hits Brakes;  Recession Follows

1982  In a widely announced policy move, Paul Volker and the Fed slowed the rate of growth of the money supply to curtail the recent inflationary spiral.  Although some mathematical proofs exist that anticipated monetary policies have no real effects, the U.S. unemployment rate increased from 7.5% in 1981 to over 9.5% in 1982.



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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