Economics Roundtable
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.
Finally, it's hard to argue against the payroll employment graph below (straight from FRED) and the comparison across recessions (courtesy of Calculated Risk).
Looking Up At 2001
In February 2001, U.S. payroll employment peaked at 132.5 million. The November 2011 figure of 131.7 million still falls 800,000 jobs short of the earlier peak.
Click on the chart for a larger version.
November Payroll Employment
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.
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Economics Help
"Helping to Simplify Economics”
Readers Question: What would happen if the Euro collapses?
The most likely scenario is that countries will leave one by one. A country would default on its debt and decide best option is to leave and create a new currency. The first country to leave would be Greece. Greece would be ...
Readers Question: when I read the EU spends 50% of their GDP, what does that actually mean? That half of Europe’s taxes are spent on government projects like welfare and entitlements, like taking money from the left hand pocket and putting money in the right hand pocket? I’m lost. Could ...
Readers Question: Could you please help me understand why high debt as a big percentage of GDP is bad, or at what point does it becomes bad? Japan is at something like 194%, and the UK at 500% (counting all debts and liabilities). Both countries are still waking up every ...
M4 Definition
M4 is a broad money supply measure. Briefly, M4 includes all notes and coins in circulation, deposits at banks and building societies, plus assets which are considered relatively liquid (short-term bonds, commercial paper)
M4 Growth in the UK
Readers Question: Does Government Debt Matter? Do high fiscal deficits threaten economic stability?
In this situation, economic stability would involve.
Low inflation Positive sustainable economic growth (e.g. close to long run trend rate of growth) Stable bond yields (i.e. avoid rapidly rising bond yields which could create difficulty in dealing with debt.) Stable exchange ratesHigh ...
A look at some of the advantages and disadvantages of hosting a major sporting event.
Hosting a major sporting event can give many economic, social and cultural benefits. However, the costs of hosting the event can also be ...
Readers Question: There just seems to be many paradoxical actions taking place in markets and economies. To sum up my questions if we have; an increase in monetary supply, (as we do), Interest rates low and falling, certain commodities rising in price, certain commodities falling in price, a steady production ...
Readers Quesiont: What do we mean by the terms ‘turbo capitalism’, ‘popular capitalism’ and ‘responsible capitalism’?
Turbo CapitalismRefers to an unregulated form of capitalism with financial deregulation, privatisation and lower tax on high earners. Turbo capitalism involves:
Absence of regulation for banking /finance system. This encourages banks to take risks and pursue ...A list and definition of different types of economic costs
Fixed Costs (FC). The costs which don’t vary with changing output. Fixed costs might include the cost of building a factory, insurance and legal bills. Even if your output changes or you don’t produce ...