Back in the real macro world, the index of leading indicators for September barely budged. If you read Chapter 6 (pages 147-148) of your text you will find out that the leading indicators provide a rough approximation of what’s going to happen in the future. The index of leading economic indicators is rose 0.1% in September after falling in July and August. The leading indicators have been down in five of the past eight months. The index is down almost 1% in the last six months.
Will the macro landing be hard or soft? That is the question in Macroland these days. Stock market investors think things are peachy. The Dow Industrial Average reached another benchmark today, closing above 12000 for the first time.
Meanwhile China’s economy slowed to a still smoking growth rate of 10.4% in the third quarter. China has had the fastest growing major economy in the world for a generation.
Extra Credit: This question will likely be on your midterm. What has been the average annual rate of U.S. economic growth in real GDP since 1890? If you are the first student to send me an e-mail (firstname.lastname@example.org) with the answer, you will be rewarded with two extra credit Discussion Board points. Only two points extra credit per student can be earned in any given week from the blog questions.