Economics Roundtable

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 .

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.


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Economics Help

"Helping to Simplify Economics”

October 17, 2014, 7:23 am, 1352840

In recent months the price of crude oil has fallen 30%. This fall in the price of oil has a significant impact in reducing transport and other business costs. Falling oil prices is good news for oil importers, such as Western ...

October 16, 2014, 7:23 am, 1352066

Readers Question: Since the debt is mainly in the form of government bonds or gilts then it can only be paid back when the term of the bond terminates. What happens if there is not enough money to pay this back?

October 15, 2014, 7:23 am, 1351436

The UK has one of the highest tax rates on petrol / diesel in Europe – roughly 60% of the final price of petrol goes to the government in excise duty or VAT.

UK fuel duty is currently 58p per litre for ...

October 14, 2014, 5:23 am, 1350625

Readers Question. You make the point that the debt to GDP fell in the post war period since the GDP rose faster than the debt but that still left the debt to ...

October 14, 2014, 5:23 am, 1350624

In the recent blog – Post-war economic boom and reduction in debt, we saw how the UK successfully reduced national debt as a % of GDP from 230% of GDP to 30% ...

October 13, 2014, 9:23 am, 1350136

Readers Question: What caused the massive decrease in the debt to GDP ratio for the UK following World War II?


UK national debt peaked in the late 1940s at over 230% of GDP. From ...

October 10, 2014, 5:23 am, 1348983

Readers Question:  Should The World Adopt A Unified Currency?

I haven’t given it much thought; given the great difficulties of the Euro single currency within parts of the European Union, the idea of extending ...

October 10, 2014, 5:23 am, 1348982

It is not a good time to be a saver in the UK. Interest rates are 0.5% and inflation has been above 2% for a high proportion of the previous five years. Because inflation is higher than nominal interest rates, we ...

October 9, 2014, 5:23 am, 1348334

The money supply measures the total amount of money in the economy at a particular time. It includes actual notes and coins and also any deposits which can be quickly converted into cash.

Narrow Money e.g. M0 = This is the level ...

October 8, 2014, 1:23 pm, 1347992

Current UK Inflation Rate

CPI inflation rate: 1.5% (headline rate) CPIH – 1.5% in the year to Aug 2014  (page updated October 3rd, 2014)

The largest contributions to the fall in the rate came from the transport (notably ...