As baseball history shows, as with GDP, with inflation we need a nominal and real amount to compare different years’ salaries and calculate future value.
Weekly Roundup: From Marijuana to the Metric System
Our everyday economics include globalization, opportunity cost, inflation, employment, monetary policy, negative externalities, recession, business cycle.
One Song, Two Graphs and the Fed’s Dual Mandate
Because the Congress established a dual mandate of high employment and price stability for the Federal Reserve’s monetary policy, they created a dilemma.
Weekly Roundup: From Potato Chips to Pregnancy
Our Posts Roundup Sunday 12.07.14 Innovative potato stories…more Monday 12.08.14 The pregnant UPS lady who sued her boss…more Tuesday 12.09.14 Measuring inflation can be tough…more Wednesday 12.10.14 Why Congress creates economic uncertainty…more Thursday 12.11.14 The ways that…
An Economist’s Definition of Misery
While a misery index shows a nation’s inflation and unemployment rates, the eurozone’s high unemployment might create disproportionate unhappiness.
Venezuela’s Biggest Economic Problem
The perverse incentives created by Venezuelan price controls result in shortages, underutilized resources, wasted time, soaring inflation and hoarding.
The Economic Impact of the Ebola Epidemic
The ebola epidemic will affect Liberia’s GDP growth rate through the illness itself and the ripple of fear that hits households, businesses and government.
The Monetary Policy Mistakes of a Babysitting Co-op
There once was a French economist whose name was Say. Proclaiming that “Supply Creates Its Own Demand,” Jean-Baptiste Say (1767-1832) entered economic history with Say’s Law. All he meant was that workers are also consumers. The money you receive for producing a good or a service…
When Did We Get “Tough Love” From the Federal Reserve?
Demonstrating Russia’s current plight, this graph so perfectly illustrates stagflation: When GDP sinks and inflation increases, the stagflation that results is tough to cure. If monetary authorities target inflation with tight monetary policy, then interest rates go up and further…