The Econ Review

Economics News with a Historical Perspective

October 22, 2016

The Econ Review features a historical perspective on economics news and opinions with daily updates.  All original material is copyrighted.  Off-site references open in new windows.

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U.S. Payroll Employment

Commentary on the latest U.S. payroll employment figures can be found at the Economics Roundtable.


In the News

Payroll Employment

Recent History   Long-Term Chart

U.S. Budget Deficit
Bar Graph
CBO Budget Projections
Historical Data

Inflation & Unemployment
The Phillips Curve

John Cochrane uses very similar Phillips Curve charts to review recent history and current issues.

The Chart Room
Charts for GDP and payroll employment show the historical patterns in this relationship.  Custom select side-by-side charts for these variables and interest rates and yield curves.

Euro Roller Coaster
The wild ride continues.

Economics Roundtable
The latest news and views.


President Reagan

President Ronald Reagan

1980.  The Reagan tax cut of 1981 marked the emergence of supply-side economics in the Federal government.  After a decade of shifting opinions about the merits of the Keynesian demand-side and the classical supply-side viewpoints, the latter became dominant.  The 1981 tax cut was specifically oriented toward increasing motivation for production by cutting marginal tax rates.


Stock Market Crash 1987

Oil Shocks Hit Supply Side

In the 1970's, oil prices rocketed to levels completely out of line with historical experience.  The underlying cause was use of crude oil prices and availability as political weapons after war in the Middle East.  Economists scrambled to understand the implications of these events for macroeconomic models.  Models had not previously incorporated energy as a factor of production because the price of energy was relatively constant and thus not useful in explaining fluctuations in the economy.  This was certainly not the case in the 1970's.


Nixon Imposes Wage and Price Controls

President Nixon Imposes Wage and Price Controls

August 15, 1971.  In a move widely applauded by the public and a fair number of (but by no means all) economists, President Nixon imposed wage and price controls.  The 90 day freeze was unprecedented in peacetime, but such drastic measures were thought necessary.  Inflation had been raging, exceeding 6% briefly in 1970 and persisting above 4% in 1971.  By the prevailing historical standards, such inflation rates were thought to be completely intolerable.



The Mundell-Fleming Model

The Mundell-Fleming Model adds a BP (balance of payments) curve to the standard IS/LM framework.  This extension provides a mechanism for thinking about monetary policy under either fixed or floating exchange rates.


Additional models of interest are available at Classic Economic Models.

Econ Clubs

Check the directory of economics clubs to see if your club is listed. Links are free.

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