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.


The Economics Roundtable is sponsored by EconModel.

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

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Economics Help

"Helping to Simplify Economics”

September 18, 2014, 5:23 am, 1337069

Readers Question: Does inflation causes unemployment?

There are a few different scenarios where inflation can cause unemployment. However, there is not a direct link. Often we will notice a trade off between inflation and unemployment – e.g. in a period of strong ...

September 17, 2014, 7:23 am, 1336374

A selection of graphs and statistics on UK measures of unemployment. Also, looking at factors that explain UK unemployment and why unemployment has fallen in recent years.

Current UK Unemployment rate

Unemployment rate of  ...

September 15, 2014, 7:23 am, 1334995

Currency substitution occurs when a country uses another currency without any official backing and without a Central Bank – instead of using its own currency.

For example, Panama uses the US Dollar as its currency. Even though it has no formal currency union with the UK. Jersey uses Sterling unofficially too.

The ...

September 15, 2014, 5:23 am, 1334942

Question and answers on the difficulty of switching from non-renewable energy sources, such as fossil fuels. (from – finding alternatives to fossil fuels)

photo Dean

Readers Question: ...

September 13, 2014, 7:23 am, 1334331

Generally I try and remain politically uncommitted. But, in the past few weeks, I’ve been surprised at how much the issue of Scottish independence has affected me. Despite a mental desire to feel nationalistic identity as unimportant, I feel deep down ...

September 12, 2014, 5:23 am, 1333752

The Eurozone inflation rate is 0.4% (ECB database)  (Sept 2014)

Eurozone HCIP inflation rate

HCIP (Harmonized consumer index prices) Source:| (ECB Inflation graphs, sometimes a few months outdated)

Food inflation

September 11, 2014, 5:23 am, 1333064

Readers Question: I have read the following:“The AD curve is downward sloping. This is not because ‘people buy more things when they are cheaper’ (the most common misunderstanding about the AD curve )”. I don’t understand this as I thought that ...

September 10, 2014, 5:23 am, 1332381

If Scotland gains independence, the Yes campaign has argued that their preferred option is to keep the Pound Sterling and enter into a currency union with the rest of the UK.

This means sharing the same currency Pound Sterling, and having the ...

September 9, 2014, 7:23 am, 1331694

The real effective exchange rate measures the value of a currency against a basket of other currencies; it takes into account changes in relative prices and shows what can actually be bought.

Nominal ...

September 5, 2014, 7:23 am, 1329823

Readers Question: In simple terms what is the difference between credit and money?


Credit is any form of deferred payment. For example, if you purchase on a credit card – a bank effectively pays for you, anticipating you will pay the credit card company back the credit in six weeks time.

If ...