Economics News with a Historical Perspective
February 26, 2017
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. Budget Deficit
In the News
The Phillips Curve
John Cochrane uses very similar Phillips Curve charts to review recent history and current issues.
Euro Roller Coaster
The wild ride continues.
The latest news and views.
Stock Market Bubble Bursts
The Dow Jones Industrial Average, which did not reach 4,000 until 1995, broke through 10,000 in April 1999. The 150% increase over four years represented an annual rate of increase greater than 25%. The fundamentals driving the market, unfortunately, did not support this increase, and a major decline in stock prices ensued.
Europe Adopts New Currency
January 1, 1999. After a lengthy period of debate, 11 European nations (Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain) adopted a common currency. All these nations now have a single monetary policy, a single interest rate, etc. Their collective future hinges on the value of the euro.
Long-Term Capital Management (LTCM)
1998. LTCM, founded by former Salomon Brothers chief bond trader John Meriwether, included Nobel Prize-winning economists Myron Scholes and Robert Merton among its brain trust. For a time LTCM achieved excellent returns for its investors, and at its peak managed $7.5 billion.
The macroeconomic models in the Classic Economic Models collection trace the historical evolution from the Classical Model of Production and Employment through the Keynesian and Mundell-Fleming Models and including some items from the new classical and new Keynesian schools of thought.
Additional models of interest are available at Classic Economic Models.
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