ECONOMICS

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515_guides_form.pdf

GUIDES The Components of

G: GDP & Growth U: Unemployment & Utilization I: Inflation & Interest rates D: Debt & Deficits E: External balances & Exchange rates S: Saving & Investment

JWI 515: Managerial Economics

The purpose of GUIDES is to help the business leader analyze macroeconomic data with confidence and speed. This template is an adaptation of a macroeconomic analysis framework presented in; Weinzierl, Matthew, Jonathan Schlefer, and Ann Cullen. “GUIDES: Insight through Indicators.” Harvard Business School 9-710-044.December 19, 2011 (2011): 1-9.

Read Instructions

Instructions - You will complete this form for assignment 1 - Remember to submit your completed GUIDES form with your written assignment - To save this document complete the following steps Go to File > Save As > Choose Your Destination > Save File * Suggested File Name: LastName_FirstName_JWI515_Assignment1

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Begin Assignment

G: GDP & Growth Week 1

Real GDP Lagging Yes

Yes

Yes

Yes

Yes Yes

Yes

Yes

Yes

Yes

No

No

No

No

No No

No

No

No

No

Not clear

Not clear

Not clear

Not clear

Not clear Not clear

Not clear

Not clear

Not clear

Not clear Lagging

Lagging

Lagging

Leading

Measures national income and output. GDP is equal to the total expenditures for all final good and services produced within the country.

Measures the value of ac- quisitions of new or existing fixed assets by the business sector. Shows how much new value the economy added through investment rather than spending.

Percentage change in GDP

The real value of output produced by a unit of labor during a certain time.

GDP divided by total population

Real GDP Growth (annual % change)

Gross Fixed Capital Formation

Productivity

GDP per capita PPP (optional)

Meaning Leading / Lagging Current

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U: Unemployment & Utilization Week 1

Unemploy- ment Rate %

Lagging

Yes

Yes

Yes

Yes

No

No

No

No

Not clear

Not clear

Not clear

Not clear Coincidental

The percentage of unem- ployment workers in the total labor force. It is low during good economics times and high during recessions Measures how much of the productive ability of the installed capital base in a country is being used. Conversely, indicates how much capital is going unused.

Capacity Utilization Rate

Meaning Leading / Lagging Current

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I: Inflation & Interest rates Week 2

CPI Lagging Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

No

No

No

No

No

No

No

No

No

Not clear

Not clear

Not clear

Not clear

Not clear

Not clear

Not clear

Not clear

Not clear

Not clear Lagging

Lagging

Lagging

Lagging

Compares current price of a fixed basket of goods.

The price for holding money - time value of money.

Compare prices over time of all output in an economy. Measures the relationship between nominal and real GDP.

Represents the long run inflation, transitionary price changes are excluded.

Represents the long run inflation, transitionary price changes are excluded

GDP Deflator (Under “Prices”)

Interest Rate %

Inflation Rate %

Core Inflation

Meaning Leading / Lagging Current

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D: Debt & Deficits Week 3 - Part 1

Indicator Click Indicator to view website data.

Govern- ment Budget

Lagging

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

No

No

No

No

No

No

No

Not clear

Not clear

Not clear

Not clear

Not clear

Not clear

Not clear

Not clear

Lagging

Lagging

N/A

Itemized accounting of the payments received by government (taxes or other fees) and the payments made by government. A budget deficit occurs when a government spends more money than it takes in.

The ratio between a coun- try’s government debt and its gross domestic product. A low ratio indicates the country is able to sufficient- ly pay back debts without incurring debts.

Amount of money govern- ment spends on services, infrastructure, etc.

Debt owed to foreign investors.

Debt / GDP

Govern- ment Spending (optional)

External Debt

Meaning Leading / Lagging Current

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D: Debt & Deficits Week 3 - Part 2

Credit Rating (optional)

N/A

Lagging

Coincidental

Yes

Yes

Yes Yes

Yes

Yes

No

No

No No

No

No

Not clear

Not clear

Not clear Not clear

Not clear

Not clear

An estimate of the ability of an entity to fulfill their finan- cial commitments.

The tax rate for corporations.

The tax rate for individuals.

Corporate Tax Rate (optional)

Personal Income Tax rate (optional)

Meaning Leading / Lagging Current

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E: External balances & Exchange rates Week 3 - Part 3

Current Account

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

No

No

No

No

No

No

No

Not clear

Not clear

Not clear

Not clear

Not clear

Not clear

Not clear

Not clear

Lagging

Lagging

Lagging

Lagging An economy’s proceeds from trade in good, services, and payments for the factors of production with the rest of the world.

Indicator of sustainability of an economy’s current status. Large deficits indi- cate heavy borrowing from abroad.

A system of money. The value of the money changes over time.

Measures the amount of change, positive or nega- tive, in currency’s value over year.

Current Account to GDP

Currency

Yearly Currency Change

Meaning Leading / Lagging Current

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E: External balances & Exchange rates Week 3 - Part 4

Imports (optional)

Yes

Yes

Yes

Yes

No

No

No

No

Not clear

Not clear

Not clear

Not clear

Amount of good purchased in one country from another.

Amount of goods purchased by foreigners from a country.

Exports (optional)

Meaning Leading / Lagging Current

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Lagging

Lagging

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Indicator Click Indicator to view website data.

S: Saving & Investment Week 4

Net National Savings (use website search field)

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

No

No

No

No

No

No

No

Not clear

Not clear

Not clear

Not clear

Not clear

Not clear

Not clear

Not clear

Lagging

Lagging

N/A

Leading

The sum of private and public savings.

Total business spending on fixed assets, such as facto- ries, machinery, equipment, etc., which provide the basis for future production.

When a person rather than a company saves money to spend or invest later.

The amount of controlling ownership in a business enterprise in one country by an entity based in another country.

Investment as Percentage of GDP (use website search field)

Personal Savings

Foreign Direct Investment

Meaning Leading / Lagging Current

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ADDITIONAL INDICATORS Fill In At Least 2 Metrics Relevant to Your Company/Industry.

Indicator

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

No

No

No

No

No

No

No

Not clear

Not clear

Not clear

Not clear

Not clear

Not clear

Not clear

Not clear

Meaning Leading / Lagging Current

Enter Country Below Trading Economics - website

CurrentTrend TrendHealthy ? Healthy ?

Enter Country Below

  1. Button 6:
  2. Button 18:
  3. Country 1: 17419 Billion
  4. Country 7: 2829 USD Billion
  5. Country 2: Positive
  6. Country 16: Positive
  7. Country 12: Negative
  8. Country 17: Negative
  9. Country 14: Negative
  10. Country 18: Positive
  11. Country 15: Positive
  12. Country 19: Negative
  13. Country 13: Positive
  14. Country 20: Positive
  15. Country 3: 1.4%
  16. Country 8: 0.3%
  17. Country 4: 2763 Billion
  18. Country 9: 111550.10 EUR Million
  19. Country 6: 52118 Billion
  20. Country 10: 35669.59
  21. Country 5: 106.00
  22. Country 11: 111.66
  23. Healthy GDP Country 1: 0
  24. Healthy GDP Growth Country 1: 1
  25. GFCF Country 1: 0
  26. Productivity Country 1: 0
  27. GDP per capita Country 1: 0
  28. GDP per capita Country 2: 0
  29. Productivity Country 2: 0
  30. GFCF Country 2: 0
  31. Healthy GDP Country 2: 0
  32. Healthy GDP Growth Country 2: 1
  33. Productivity Country 1 : Off
  34. Next Page:
  35. Previous Page:
  36. Country 21: 5%
  37. Country 23: 10.3%
  38. Country 25: Stable
  39. Country 26: Negative
  40. Country 27: Negative
  41. Country 28: Negative
  42. Country 35: 74.8
  43. Country 36: 80.70
  44. Country Entry 2: France
  45. Country Entry 1: United States
  46. Unemployment Rate % Country 1: 2
  47. Capacity Utilization Rate Country 1: 1
  48. Unemployment Rate % Country 2: 0
  49. Capacity Utilization Rate Country 2: 0
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  54. Country 29: 237.92
  55. Country 30: 2.2%
  56. Country 32: Positive
  57. Country 39: Negative
  58. Country 40: Positive
  59. Country 41: Positive
  60. Country 42: Negative
  61. Country 43: Negative
  62. Country 46: Neutral Since 2009
  63. Country 47: Negative
  64. Country 48: 110.29
  65. Country 49: 2014 - 112.31
  66. Country 50: .5%
  67. Country 51: 0%
  68. Country 54: .9%
  69. Country 55: -0.1%
  70. CPI Country 1: 0
  71. GDP Deflator Country 1: 0
  72. Interest Rate % Country 1: 0
  73. Inflation Rate % Country 1: 0
  74. Core Inflation Country 1: 0
  75. Inflation Rate % Country 2: 1
  76. Core Inflation Country 2: 2
  77. Interest Rate % Country 2: 2
  78. CPI Country 2: 0
  79. GDP Deflator Country 2: 0
  80. Inflation Rate % Country 2 : Off
  81. Next Page 3:
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  84. Previous Page 4:
  85. Country 52: Negative
  86. Country 71: Negative
  87. Country 83: 2.20
  88. Country 101: 0.60%
  89. Country 44: -2.5 of GDP
  90. Country 45: -3.50
  91. Country 53: Positive
  92. Country 56: Positive
  93. Country 57: Positive
  94. Country 58: Positive
  95. Country 59: Positive
  96. Country 65: Negative
  97. Country 60: Positive
  98. Country 67: Negative
  99. Country 61: 104.17%
  100. Country 62: 95.8
  101. Country 63: 2870.6
  102. Country 66: -7356784.00
  103. Country 64: 128937 EUR Million
  104. Country 68: 5251461.75 Million
  105. Government Budget Country 1: 0
  106. DGP / Debt Country 1: 0
  107. Government Spending Country 1: 2
  108. External Debt Country 1: 1
  109. Government Spending Country 2: 0
  110. External Debt Country 2: 2
  111. Government Budget County 2: 0
  112. DGP / Debt Country 2: 0
  113. Government Budget Country 2: Off
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  118. Country 69: S&P - AA+ Moody - Aaa Fitch - AAA TERating - 97
  119. Country 70: S&P - AA Moody - Aa2 Fitch - AA TERating - 90
  120. Country 72: Stable
  121. Country 73: Stable
  122. Country 74: Negative
  123. Country 75: Stable
  124. Country 76: Stable
  125. Country 78: Stable
  126. Country 80: 39%
  127. Country 81: 33.3%
  128. Country 82: 39.6
  129. Country 84: 50.30%
  130. Credit Rating Country 1: 0
  131. Corporate Rate Country 1: 0
  132. Personal Income Tax Rate Country 1: 2
  133. Personal Income Tax Rate Country 2: 2
  134. Credit Rating Country 2: 0
  135. Corporate Rate Country 2: 0
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  140. Country 77: -125314 USD Million
  141. Country 79: -3900 EUR Million
  142. Country 85: Positive
  143. Country 86: Negative
  144. Country 87: Negative
  145. Country 88: Positive
  146. Country 89: Negative
  147. Country 90: Negative
  148. Country 91: Negative
  149. Country 92: Positive
  150. Country 93: 2.7%
  151. Country 94: 1.4%
  152. Country 95: 94.42
  153. Country 96: 94.4190
  154. Country 97: 1.13
  155. Country 98: 1.13
  156. Current Account Country 1: 1
  157. Current Account to DGP Country 1: 1
  158. Currency Country 1: 2
  159. Yearly Currency Change Country 1: 2
  160. Currency Country 2: 2
  161. Yearly Currency Change Country 2: 2
  162. Current Account Country 2: 1
  163. Current Account to DGP Country 2: 0
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  168. Country 99: 225130.00
  169. Country 100: 43309.00
  170. Country 102: Positive
  171. Country 103: Positive
  172. Country 104: Negative
  173. Country 105: Negative
  174. Country 108: 118.2
  175. Country 109: 38132 EUR Million
  176. Imports Country 1: 0
  177. Exports Country 1: 1
  178. Imports Country 2: Off
  179. Exports Country 2: 0
  180. Imports Country 2 : Off
  181. Exports Country 2 : Off
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  186. Country 112: 2013 - 277,992,857,472
  187. Country 113: 2013 - 56,900,551,296
  188. Country 115: Negative
  189. Country 116: Negative
  190. Country 117: Positive
  191. Country 118: Positive
  192. Country 119: Positive
  193. Country 120: Negative
  194. Country 121: Positive
  195. Country 122: Negative
  196. Country 123: 2009 - 15.03%
  197. Country 124: 2009 - 19.19%
  198. Country 125: 5.40%
  199. Country 126: 35494
  200. Country 127: 15.89
  201. Country 128: 4402
  202. Net National Savings Country 1: 1
  203. Investment as Percentage of GDP Country 1: 0
  204. Personal Savings Country 1: 0
  205. Foreign Direct Investment Country 1: Off
  206. Personal Savings Country 2: 0
  207. Foreign Direct Investment Country 2: 2
  208. Net National Savings Country 2: 1
  209. Investment as Percentage of GDP Country 2: 0
  210. Personal Savings Country 1 : 0
  211. Foreign Direct Investment Country 1 : 0
  212. Personal Savings Country 2 : Off
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  217. Country Entry 2 : France
  218. Country 114:
  219. Country 144:
  220. Country 152:
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  224. Country 148:
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  226. Country 151:
  227. Country 149:
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  230. Country 147:
  231. Country 129:
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  236. Country 134:
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  238. Country 136:
  239. Country 137:
  240. Country 138:
  241. Country 139:
  242. Country 140:
  243. Country 141:
  244. Country 142:
  245. Country 143:
  246. Custom 1 Healthy 1 : Off
  247. Custom 2 Healthy 1 : Off
  248. Custom 3 Healthy 1 : Off
  249. Custom 4 Healthy 1 : Off
  250. Custom 3 Healthy 2: Off
  251. Custom 4 Healthy 2: Off
  252. Custom 1 Healthy 2: Off
  253. Custom 2 Healthy 2: Off
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