Economics Roundtable

NOTICE 9/30/177

The Economics Roundtable website has been up and running for a couple of days now. Further periods of testing will be necessary. The RSS feed is still not working. The left sidebar links are also probably not updating correctly.

The problems were caused by updates to the programming language php and to the Apache operating system. It is taking time to track down the problems this causes with my system. - Bill Parke

March 2017 Fed Funds Rate

What is the effect of a 0.25% change in the Fed Funds rate?.

Click on the image to get a bigger version.


March 2017 Payroll Employment

Payroll employment has not grown impressively since 2000. Some baby-boomers retired, but that does not totally account for this graph.

Click on the image to get a bigger version.


May 2014 Payroll Employment

After 76 months, we finally got back to the prerecession level of payroll employment.

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Jobs

The best summary of the state of our economy is the graph (below) of employment as a fraction of population for people over 16 years old. The decrease is large, but the most troubling feature of the graph is the flat trend .


Click on the image to get a bigger version.


Graph-of-the-Year Candidates

Donald Marron likes European interest rates. Click on the image to get a bigger version. Can you find three distinct subperiods?

Brad DeLong favors the U.S. gdp gap.


Remember M1?

Money Supply M1 growth is now over 20% per year over a 12 month lag. M1 growth has touched 20% before, but not with excess reserves of $1.6 trillion. Where is M1 headed?


Click on the chart for a larger version.


EconModel

The Economics Roundtable is sponsored by EconModel.

The Classic Economic Models cover micro, macro, and financial markets.


RSS Feed

Economics Help

"Helping to Simplify Economics”


September 26, 2017, 5:04 am, 1779387

I have published a new book “Cracking Economics” (Cassell Octopus Press) It is an overview of economics, split into easily manageable topics. The book is illustrated throughout with diagrams, ...


September 25, 2017, 5:44 am, 1778998

Human Capital is a measure of the skills, education, capacity and attributes of labour which influence their productive capacity and earning potential.

According to the OECD, human capital is defined as:

“the knowledge, skills, competencies and other attributes embodied in individuals or groups of individuals acquired during their life and used to ...


September 23, 2017, 6:35 am, 1778715

The UK national debt is the total amount of money the British government owes to the private sector and other purchasers of UK gilts.

In August 2017, UK public sector net debt was £1,773.3 billion equivalent to 88% of GDP
Source: [1. ONS public sector finances,- HF6X] (page updated Sep ...


September 21, 2017, 5:45 am, 1777883

The business or trade cycle relates to the volatility of economic growth, and the different periods the economy goes through (e.g. boom and bust), There are many different factors that cause the economic cycle – such as interest rates, confidence, the credit cycle and the multiplier effect. Some economists also ...


September 20, 2017, 5:04 am, 1777424

Excess consumption of sugar is linked to several health problems, such as obesity, diabetes, and tooth decay. Consumption of sugar imposes costs on ...


September 18, 2017, 5:24 am, 1776548

Lower income tax rates increase the spending power of consumers and can increase aggregate demand, leading to higher economic growth (and possibly inflation). On the supply side, income tax cuts may also increase incentives to work – leading to higher productivity.

However, the effect of tax cuts depends on how the ...


September 18, 2017, 5:24 am, 1776547

Lower income tax rates increase the spending power of consumers and can increase aggregate demand, leading to higher economic growth (and possibly inflation). On the supply side, income tax cuts may also increase incentives to work – leading to higher productivity.

However, the effect of tax cuts depends on how the ...


September 14, 2017, 5:04 am, 1775413

Supermarkets and other retailers often seek ways to increase the price without losing customers. They have a few different options, depending on the good and its price elasticity of demand. In recent months, many supermarkets have managed cost increases by shrinking the size of the packet. Prices stay the same, ...


September 12, 2017, 1:14 pm, 1772134

In economics, gravity theory relates to how international trade between countries is influenced by

Geographical proximity Economic size (mass) of the respective countries (M) Similarities in consumer preferences and economic development

The gravity theory of trade suggests, ceteris paribus, an economy will gravitate towards trading with its closest neighbours and economies which are similar ...


September 12, 2017, 1:14 pm, 1772133

International trade between different countries is an important factor in raising living standards, providing employment and enabling consumers to enjoy a greater variety of goods.

International trade has occurred since the earliest civilisations began trading, but in recent years international trade has become increasingly important with a larger share of GDP ...