Thus the profit maximization model predicts something about the effect of taxation on output, namely that output decreases with increased taxation. If the predictions of the model fail, we conclude that the profit maximization hypothesis was false; this should lead to alternate theories of the firm, for example based on bounded rationality. Borrowing a notion apparently first used in economics by Paul Samuelsonthis model of taxation and the predicted dependency of output on the tax rate, illustrates an operationally meaningful theorem; that is one requiring some economically meaningful assumption that is falsifiable under certain conditions. Macroeconomics needs to deal with aggregate quantities such as outputthe price levelthe interest rate and so on.
Due to the limited scope of services surveying, those costs are heavily understated and artificially depress inflation reported for the broad finished goods index.
For example, it is rare to find a PPI measure of insurance costs that represents more than 20 percent of the inflation rate seen in actual policy costs. On top of all survey issues, the PPI measures usually are viewed on a seasonally-adjusted basis.
Instead of smoothed monthly changes, however, the resulting adjusted data tend to show a high level of random volatility in terms of month-to-month change. Viewed in terms of year-to-year change, or the annual rate of inflation, though, the series begins to show a strong leading correlation to the CPI.
Because unfortunately, dear readers, the sick irony of it all is that the policy makers care about PPI, and it influences their decisions.
The numbers could be as bogus as Sarah Palin, but to play the game, and play it well, you gotta play by the rules of the policy makers. The BLS releases this date monthly, during the second full week of the month after the reporting month.
This index is important because it is the very first inflation measure available every month.
If you watch crude prices —the first in the chain of production trends— investors can sometimes spot inflation in the pipeline, before it shows up in the Consumer Price Index. A monthly survey of 5, random individuals is conducted about 3, respondwhich asks questions from five major categories: Thoughts and feelings about business conditions, employment, and the labor market Expectations for employment and financial and business conditions in the next six months Consumer spending plans like buying cars, houses, appliances, and other big-ticket items in the next six months Vacation plans in the next six months Expectations of inflation, interest rates, and stock prices in the next 12 months.
People can give three opinions; positive, negative, and neutral. Paying attention to these numbers can signal whether or not consumers are more inclined to spend or save their money, based on their sentiments about financial and employment prospects.
The problem with consumers was not that they lacked confidence, but that they had too much.
Their apparent financial success combined with the success of the Fed, had made them confident to the point of recklessness… in the economy, the absence of qualms or question marks was unsettling.
Consumers increased personal consumption at a 6 percent rate in the fourth quarter of —the same quarter in which the economy was supposed to be reeling from the recession and the terrorist attacks of September 11… Consumers go more deeply into debt only when they are pretty sure the extra debt will be no problem for them… the confidence of US consumers and investors was taken as good news throughout the world.
People thought it meant good things to come… Confidence is a trailing indicator. The more there is of it, the greater the boom left behind, and the greater the trouble that lies ahead.
Consumer confidence is a sketchy number at best. Suddenly sounds pretty unreliable, right? It seems like a no-brainer that disappointment can lead to disinvestment, and that consumers are more likely to spend money when they feel confident about their financial futures.
Employment Current Employment Statistics, or CES, provide data on national employment, unemployment, and wages and earnings across all non-agricultural industries, including civilian government workers. This information is often specified and differentiated, like the employment or unemployment rate of men and women, or teens, or different ethnic groups.
CES numbers do not include business proprietors, self-employed, or volunteers. And anyone who has ever hustled for a paycheck knows thatpart-time jobs andfull-time jobs are not the same thing.
They do not have the same impact on the economy. Again, not counted in the unemployment figure are another 2. That figure is upfrom a year earlier. Take a look at this chartwhich shows the drop off in labor force participation rate by age: The Washington Post explains: Labor force participation rates for younger workers, ages 16 to 54, has been dropping sharply for a number of reasons — some good, some terrible.structural reforms and investigate its impact on economic growth.
We used a set of structural reform indicators compiled by the EBRD for CEE countries in transition. International development or global development is a wide concept concerning level of development on an international scale. when economic growth boosts development and industrialisation, Indicators of social change can be used to complement economic factors as indicators of development and in formulating development policies.
Actually, some economists believe that money supply data has fallen out of sync with other economic indicators, and the relevancy of the information has been fading for about two decades after a wave of changes, like introducing new depository products, the internationalization of the economy, and the movement of consumer funds from bank deposits to investment accounts.
Thus, a country’s growth can be broken down by accounting for what percentage of economic growth comes from capital, labor and technology.
It has been shown, both theoretically and empirically, that technological progress is the main driver of long-run growth. Paying attention to economic indicators can give you an idea of where the economy is headed so you can plan your finances and even your career accordingly.
There are two types of indicators you need to be aware of: Leading indicators often change prior to large economic adjustments and, as such, can be used to predict future trends.
S IN THAILAND, Here is a list of the main measurable indicators of economic growth and structural change for Thailand to be observed by World Bank staff members who are visiting there.
To ensure a successful tour of business meeting between the World Bank representatives and the Tha.