Economics Roundtable

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.


Jobs

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”


February 23, 2015, 5:23 am, 1427066

The throw-away economy refers to the prevalence of consumer goods which only last for a short period of time. When they stop working / no longer relevant, we throw them away and replace them with new goods.

This is in contrast to ...


February 14, 2015, 5:23 am, 1422460

Readers Question: Endangered rain forests, wild fish, elephants and more are examples of the tragedy of the commons. What would economists recommend to save, rain forests or fish stocks?


February 12, 2015, 5:23 am, 1421080

Readers question: In all the media coverage of the UK deficit / debt / recovery, two aspects are rarely highlighted / quantified / contextualized.

1. The £50bn interest payments on the debt (opportunity cost / %)
2. UK productivity (output per head ...


February 11, 2015, 5:23 am, 1420292

Just a short post, inspired by this article by Hamish McRae in Independent – Would it Matter if Greece left the Euro?

So often governments have fought ‘tough and nail’ to stay in an exchange rate system. But, when they finally leave – it is the best thing they ever ...


February 9, 2015, 11:23 am, 1418966

Readers question: should the government focus on achieving a particular macroeconomic objective over the others?

This is a good question. There is a lot that can be said because it encompasses so many different topics.

Firstly, the three main macro-economic objectives:

Higher economic growth Low ...


February 9, 2015, 5:23 am, 1418743

A look at the possible conflicts between different macro-economic objectives.

The main macro economic objectives are:

Positive and sustainable economic growth (UK, long run trend rate is around 2.5%) Low inflation (UK target 2% +/-1) Low unemployment / Full employment (e.g. around 3%) Satisfactory current account ...


February 6, 2015, 5:23 am, 1417536

A report by NIESR suggests that austerity pursued by the government in 2010, needlessly led to a delayed economic recovery and could have cost the UK 5% of GDP or £1,500 per person.

The ...


January 30, 2015, 5:23 am, 1413050

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.


January 29, 2015, 5:23 am, 1412202

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 ...


January 26, 2015, 5:23 am, 1409764

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