Published at: online.wsj.com
November 1, 2007
A good economy should be described in terms of sustainability To make a point in economics, one needs measurements
Obviously, Just a Standard Small Dip on the Short Business Curve
October 30, 2007
The latest readings on some of the U.S. “ economic indicators” is presented, in certain quarters, as continuing signs of weakness. The main arguments being “ Sales of newly built homes over the summer were weaker than previously estimated” , “September manufacturing was subdued”, “Business inventories are mounting and the job market is displaying worrying signs of erosion.” However, everybody who understands the theory of business cycles and reads the real-data and forecasts ( not just US but Canadian as well ) , should see a typical short-term dip in the quasi-sine curve that is generally known to be spotted within the “ upper” and “lower” boundaries --- a two parallel straight lines in the two-dimensional space, where on the x-axis is “time” and on y-axis is “economic activity” --- that are both increasing with “time.”