Ed Dolan's Econ Blog

Archive for September, 2013

  • Key Inflation Indicator Goes Negative, but Don’t Panic, Deflation is NOT on the Way

    There was an interesting nugget of data  buried deep in yesterday’s GDP report from the Bureau of Economic Analysis: The rate of change of the deflator for personal consumption expenditures fell to an annual rate of  -0.1 percent from the 0.0 percent rate reported earlier. An even broader measure of inflation, the GDP deflator, was […]

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  • US Corporate Profits at All-Time High as GDP Growth Holds at 2.5 Percent

    The Bureau of Economic Analysis released new data today showing that corporate profits reached an all-time nominal high in the second quarter of 2013. Profits before tax rose to 12.53 percent of GDP from 12.22 percent in the previous quarter, as the following chart shows. That was just fractionally short of the all-time high of […]

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  • Whatever Became of the Money Multiplier?

    If you are teaching or taking an introductory macroeconomics course this fall, you will, at some point, encounter the money multiplier. The multipier posits that there is a stable ratio between M2, the stock of ordinary money in the economy, which consists of currency and bank deposits, and the monetary base, also known as high-powered […]

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  • US Working-Age Poverty Remains Near Record High in 2012

    The Bureau of the Census released data for U.S. poverty rates and family income today. The headline poverty rate for all individuals was essentially unchanged from 2011, at 15 percent. The poverty rate reached an all-time low of 11.3 percent in 2000. Median family income declined from $51,100 to $51,017, a change that is not […]

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  • What Does the U-6 “Broad Unemployment Rate” Really Tell Us?

    During the recent deep recession and slow recovery, U-6, an alternative measure of unemployment issued by the Bureau of Labor Statistics, has received increased attention. People often refer to U-6, which includes several groups of workers in addition to the officially unemployed, as the “broad unemployment rate.” No doubt, part of its popularity stems from […]

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  • US Unemployment Edges Down to 7.3 Percent, a New Low for Recovery

    The U.S. unemployment rate edged down from 7.39 percent in July to 7.28 percent in August, according to data released today by the Bureau of Labor Statistics. The decrease did not, however, reflect an across-the-board strengthening of the labor market. According to the BLS household survey, the civilian labor force, the number of unemployed, and […]

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