January 2014 Payroll Employment
We are getting closer to the previous peak.
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 .
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.
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?
The Economics Roundtable is sponsored by EconModel.
The Classic Economic Models cover micro, macro, and financial markets.
"Helping to Simplify Economics”
Readers Question: Why is it that when there is low economic growth, unemployment rises?
A low rate of economic growth can cause higher unemployment. Though it is not always the case. During 2010-13 the UK experienced a slow rate of economic growth, ...
Readers Question: Why is public money (taxes) only 47% of the UK’s GDP spent on public spending?, where is the rest of my money being spent. This is a genuine question from a 58 year old who has no real concept ...
In recent years, the government has sought to increase the amount students pay for studying at university. In the UK, the government have phased out grants and introduced top-up fees. With tuition fees and rising living costs, students could end up ...
When I was young (let say the 1980s) a Pound shop was a bit of a novelty.
Visiting Morecambe, a seaside resort, there would be one or two Pound shops. I only remember ...
Readers Question: Hello I recently saw a programme How China Fooled the World – with Robert Peston and I was wondering what threats and opportunities does the growth of economies like China and India provide to the UK economy?
According to the IMF, in 2010, the Chinese economy was $5,878 billion ...
An appreciation means an increase in the value of a currency. It means a currency is worth more in terms of foreign currency.
A example of an appreciation in the ...
Readers Question: how can the government avoid public sector failure?
Firstly, it makes a change to consider a question like this. Usually the question is – Why is the government inefficient? Why do we get government failure? Should we privatise public services? But, here we can examine whether the tendency to ...
Readers question: What is a ‘dual economy’?
A dual economy refers to the existence of two distinct types of economic segments within an economy. This involves:A capitalist based manufacturing sector (geared towards global markets) Labour intensive agricultural sector (low productivity, geared towards subsistence farming or local markets)
The British economist W. Arthur Lewis ...
Readers Question: how does a current account surplus affect domestic employment ?
A current account surplus means an economy is exporting a greater value of goods and services than it is importing. A country with a current account surplus will have ...
Readers question “If a firm does not have access to the supply of a good then the market will not be contestable. E.g. Oil firms could restrict the supply of petrol to petrol stations, making it difficult for new firms to ...