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”

February 2, 2016, 11:23 am, 1604510

A look at the major trends in UK housing in the past century, including the trends on housing tenure, house prices and the supply of new houses.

Victorian housing

The Industrial revolution saw rapid growth in inner cities as people flocked to the city for new factory jobs. ...

February 1, 2016, 11:23 am, 1604113

Generation rent is a term to describe how many young people are unable to buy a house, but need to privately rent. Since 1993, house prices have risen significantly faster than incomes, making a mortgage out of reach for many people under the age of 30.

January 29, 2016, 9:23 am, 1603403

Readers Question: why some countries are more successful in attracting Foreign Direct Investment than others?

Foreign direct investment (FDI) means companies purchase capital and invest in a foreign country. For example, if a US multinational, such as Nike built a factory for making trainers in Pakistan; this would count as ...

January 28, 2016, 5:23 am, 1602843

Readers Question: Who exactly is the UK is in Debt to? please can you simplify and explain.

There are two types of debt:

Government debt (Public sector debt / National debt) – The money the government has borrowed External debt. Liabilities the UK owe to the rest of the world – ...

January 28, 2016, 5:23 am, 1602842

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

It is a good question to ask. In the past few years, many ...

January 25, 2016, 3:23 pm, 1601837

The global economy faces many difficulties, both short term and long term. In the short term, the global economy risks a prolonged period of sluggish growth, which will lead to problems such as high unemployment, debt default and low investment. In the longer term, the global economy faces greater threats ...

January 18, 2016, 7:23 am, 1599688

In recent months, we have seen a dramatic drop in oil prices. For many consumers and business this fall in the price of oil will be welcome reduction in the cost of living and a reduction in the cost of business. However, is such a steep fall in oil prices good ...

January 16, 2016, 11:23 am, 1599468

I found this old video I made in 2008 about Keynesian economics. It’s OK for a basic introduction to some elements of Keynesian economics.

2008 was a pivotal year for economics because it marked a sharp break from much of the post-war economic cycles. 2008 broke the long-period of economic expansion, ...

January 16, 2016, 11:23 am, 1599467

For those who like to follow economics help by email delivery, a note to say I have switched over from Google Feedburner to Mail Chimp.

It will not make much difference to readers, but Mail Chimp will be higher quality and more reliable than the ‘free’ feedburner service.

Since Google acquired Feedburner, ...

January 16, 2016, 11:23 am, 1599466

Readers Question: Economic theory says that when Quantity (Q.S) increases Price (P) should ordinarily fall. After the 2007 crisis in the USA, the FED pumped billions of Dollars into the economy through QE. However the price of dollars, interest rate has not only fallen lower, but is closer to zero ...