Misery Index
In the 1970s, economists introduced "The Misery Index". It was a way to measure how Stagflation was putting the squeeze on American families. Since we appear in the mood for 1970s retro chic, let's reintroduce the Misery Index:
2(Unemployment rate) + Inflation Rate = Current Misery levels
Right now we are at 5.5% unemployment and the CPI is 7.9%.
2(5.5) + 7.9 = 18.9% Misery
This is our benchmark, let's see where it goes from there.
Labels: economics, Misery Index, Stagflation
1 Comments:
what was the index back in the original stagflation days?
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