Economic Statistics for Practitioners and Students: Trading Economics

The recent global financial crisis brought to light the importance of having economists who comprehend how key economic and market statistics influence financial market trends and how to reduce the risks for companies that these trends may have. Trading Economics offers assistance in a convenient and useful manner for navigating important market figures. This book examines surveys, economic growth statistics, inflation, labour markets, global trade, monetary and fiscal indicators, and their significance in financial markets with a focus on the relationship between economic data and market movements. It avoids complicated terminology and instead provides a practical, approachable introduction to financial figures and how to make money from them.

demonstrates with clear graphics and a simple design how to trade successfully in Financial markets reduce danger for your company.

Written by reputable public figures Trevor Williams and Victoria Turton, who have expertise working on the New York Stock Exchange

The book is accompanied by a website with a blog and new polls as they appear.
Trading Economics is a crucial, all-inclusive aid to comprehending every facet of financial market trends and how to take advantage of them. It includes worked examples and up-to-date information.

WHO THE AUTHOR IS

After giving some lectures, Trevor Williams left the UK Civil Service and joined Lloyds Banking Group. Currently, Trevor serves as the Commercial Banking Chief Economist for Lloyds Bank. He frequently contributes to journals, makes appearances in the financial press, and presents economic viewpoints on television. The Institute for Economic Affairs Shadow Monetary Policy Committee, which is made up of academics and City experts, includes Trevor as a member. This “shadow” MPC, which was established in 1997 two months after the formal MPC, is the oldest. He is a visiting professor in Derby University’s banking and finance department.

Before working for the Bank of Scotland Corporate, Victoria Turton earned history degrees from the colleges of Sheffield and Manchester. She presently works for Editions as a Senior Copywriter. She has two boys, is married, and resides in North Yorkshire.

Table of contents ix Acknowledgements

ix Introduction

Indices of Surprise xii

Charting a New Terrain xix

One survey

Behavioural Economics and Surveys 2

Survey Types 3

3 business polls

Surveys of consumers 21

28 Conclusion

Economic Development 2

Economic Development over Time 31

GDP 34

What Is the GDP? 39

Dissecting GDP 42

Why Is GDP Significant? What Measures It? 43

GDP Index Numbers and Price Deflactor Numbers

45 used in their calculation

Explanation of the GDP Measures in Detail 48

61 AMarket Link

GDP components 62

64 Conclusion

3 Employment Markets 65

Trends in Employment 66

What Was the Change’s Motivator? 70

Effects of Economic Growth 71

Phillips Curve Indicates the Absence of Durable Trade-Offs 74

NAIRU Is More Important 75

Workplace Measures 76

Introduction ix Acknowledgements

Introduction, page

Surprise Indicators xii

Setting a New Course xix

one study

Surveys and Behavioural Economics 2

Survey Formats 3

3 commercial votes

shopper surveys 21

28 In summary

Economic Progress 2

Economic Growth Throughout Time 31

GDP 34

What Does GDP Mean? 39

Examining GDP 42

Why Is the GDP Important? How Is It Measured? 43

Price Deflactor Numbers and GDP Index Numbers

used in their computation was 45.

Detail of the GDP Measures’ Explanation 48

AMarket Link 61

GDP elements 62

Conclusion: 64

Markets for Employment 3 65

Employment Trends 66

What Driven the Change, and Why? 70

Economic Growth’s Effects 71

The Phillips Curve Shows No Durable Trade-Offs 74

NAIRU Has Greater Importance

Occupational Measures 76

Relevance to Market 173

Regulatory Authority Retains by the Bank of England 176

What Function Does the Office of Budget Responsibility Have in the Making of Fiscal Policy? 180

The Committee for Monetary Policy 181

Another Bank Innovation: Forward Guidance 183

The Function of the Debt Management Office 185

International Debt Comparison 188

Fiscal Goals Give Debt Reduction Credibility 190

What Value Can We Draw from This? 192

Resolution 193

7 Statistics on World Trade 195

What Is the Balance of Payments for a Country?

What Motivates Us to Measure the Balance of Payments?

Why Does It Matter? 198

The Balance of Payments Concept 199

The UK Is Not the Only Country with a Trade Deficit 204

A Long-Term Goods Shortfall 208

An Ongoing Services Surplus to Nearly Offset the Trade Deficit 210

Market Relevance 173

The Bank of England Retains Regulatory Authority 176

What role in the formulation of fiscal policy does the Office of Budget Responsibility play? 180

monetary policy committee 181

Forward Guidance Is Yet Another Bank Innovation 183

The Debt Management Office’s Purpose 185

Comparison of Global Debt 188

Fiscal Objectives Encourage Debt Reduction 190 Credibility

What Implications Can We Make of This? 192

193rd resolution

7 World Trade Statistics 195

What Is a Country’s Balance of Payments?

Why Do We Calculate the Balance of Payments?

Why Is It Important? 198

The Concept of the Balance of Payments 199

There are other nations with trade deficits besides just the UK 204

A Shortfall in Long-Term Goods 208

A Continuous Service Nearly Offset the Trade Deficit with the Surplus