Technical Problems 1/21/15
The website was down for a day and a half, but is back up now.
May 2014 Payroll Employment
After 76 months, we finally got back to the prerecession level of payroll employment.
Click on the image to get a bigger version.
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 .
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.
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?
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"Helping to Simplify Economics”
Readers Question: Is there an inbuilt deflationary bias in the Eurozone?
Note: I originally wrote this post in 2010. Unfortunately, every year there is a reason to update the post and suggest the deflationary bias in the Eurozone keeps getting stronger.
Deflation means a fall in prices (a negative inflation rate). Policy makers should generally be concerned if there is an inflation rate of less than the target of 2%.
For example, in the Eurozone Jan 2015, the headline inflation rate is ...
Greece is a very good example of the damage of austerity can do to both economies and the social fabric of a country. Firstly Greek austerity is almost unprecedented in its scope and intensity.
Greece government spending and revenue
The latest stats for UK net migration show an annual net migration of 260,000 (June 2014). This is roughly split between EU and non-EU migrants142,000 from EU 44,000 of the EU are from the EU8 (most recent EU countries – Poland, Hungary, ...
In the past two decades, the UK has experienced a steady flow of net migrants into the economy. Net migration is a significant factor in the growth of the UK population. But, does this net migration help or hinder the UK ...
Bank of England base interest rates are currently 0.5%. Economists are divided about when interest rates will rise. Some point to the evidence of a strong economic recovery to suggest interest rates could rise by mid 2015. Others argue that the ...
What is the UK’s debt burden?
Firstly, there are different types of debt to considerGovernment debt – See: public sector debt (often referred to as National debt) Private sector debt – indebtedness of householders, finance sector and non-financial companies. External debt – the ...
Readers Question: Pareto efficiency occurs (as you say) ‘when it is impossible to make one party better off without making someone worse off’. Assume (and Economics seems to do this a lot) two people live in the world. One is a multi-billionaire and the other has no money at ...
You are welcome to ask any questions on Economics. Though you might also like to try google custom search (top right) to see if the topic has been covered before.
I am looking to explain economic principles / ideas/ recent developments in ...
The past few months have seen a rise in the US dollar. The trade weighted index has risen from 95 in 2011 to 111 in Jan 2011. There has been a near 10% rise in the value of the dollar since ...