W. P. Carey School of BusinessSlide 1 Economic Forecasting
W. P. Carey School of BusinessSlide 2 Questions What does “growth” or “recession” in the economy mean? Why bother to forecast the economy? What are “leading”, “lagging”, and “coincident” indicators? Examples?
W. P. Carey School of BusinessSlide 3 Some Important Variables Gross domestic product (GDP) Personal consumer expenditures (PCE) Aka: Consumer spending Capital spending Others …
W. P. Carey School of BusinessSlide 4
W. P. Carey School of BusinessSlide 5
W. P. Carey School of BusinessSlide 6
W. P. Carey School of BusinessSlide 7 Definition: Recession Generally considered to be two consecutive quarters of negative growth in GDP What is the importance of knowing when a recession starts and stops?
W. P. Carey School of BusinessSlide 8
W. P. Carey School of BusinessSlide 9
W. P. Carey School of BusinessSlide 10 Another Definition: Slowdown How would you define “economic slowdown”? How does it differ from “recession”? Does it matter if they differ?
W. P. Carey School of BusinessSlide 11 Play with Data Use the Excel data provided to discover relationships useful to forecast the economy Be prepared to discuss.
W. P. Carey School of BusinessSlide 12
W. P. Carey School of BusinessSlide 13
W. P. Carey School of BusinessSlide 14
W. P. Carey School of BusinessSlide 15
W. P. Carey School of BusinessSlide 16
W. P. Carey School of BusinessSlide 17
W. P. Carey School of BusinessSlide 18
W. P. Carey School of BusinessSlide 19
W. P. Carey School of BusinessSlide 20
W. P. Carey School of BusinessSlide 21
W. P. Carey School of BusinessSlide 22
W. P. Carey School of BusinessSlide 23
W. P. Carey School of BusinessSlide 24
W. P. Carey School of BusinessSlide 25
W. P. Carey School of BusinessSlide 26
W. P. Carey School of BusinessSlide 27
W. P. Carey School of BusinessSlide 28
W. P. Carey School of BusinessSlide 29
W. P. Carey School of BusinessSlide 30
W. P. Carey School of BusinessSlide 31
W. P. Carey School of BusinessSlide 32
W. P. Carey School of BusinessSlide 33
W. P. Carey School of BusinessSlide 34
W. P. Carey School of BusinessSlide 35
W. P. Carey School of BusinessSlide 36
W. P. Carey School of BusinessSlide 37
W. P. Carey School of BusinessSlide 38
W. P. Carey School of BusinessSlide 39
W. P. Carey School of BusinessSlide 40 The End