What do these factors indicate about the economy?
chengxihe
3100Project.pptx
Will Anderson
Dylan Beckstrom
Konnor Kaczka
Tommy Patterson
Caprice Steidle
Jiaqi Wang
Group 6
What are some additional (besides GDP) economic indicators? Are they leading or lagging? What do they “indicate about the economy? How does the Federal Open Market Committee gather/hear about these indicators before they vote?
Economic Indicators
Table of Contents
Index
Leading Indicators
Lagging Indicators
Coincident Indicators
What do these indicate about the economy?
How does the FOMC gather/hear about these indicators before they vote?
Concluding Thoughts
Index
Leading factors
dylan
Lagging Factors
Definition: Observable factor that changes sometime AFTER a financial/economic/business variable correlated to it changes.
Gist: Tells you about what has already happened
Why? Can confirm trends & changes in trends
Useful for gauging trends of general economy or as signals to buy/sell assets
Examples:
Unemployment Rate
Consumer Price Index
Balance of Trade
Interest Rates
Pros: Offers measurable outputs to whether goals were achieved or not
Cons: Provides insights “too late” to do anything (e.g., position late);
No insights to why a trend is happening
will?
Coincident Indicators
What do these factors indicate about the economy?
Tommy
How does the FOMC gather/hear about these indicators before they vote?
Concluding Thoughts
THANKS
Does anyone have any questions?
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