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Trading Economics: A Guide to Economic Statistics for Practitioners and Students

Book Description

A practical guide to understanding how key economic and market statistics drive financial market trends

The recent global financial crisis stressed the need for economists who understand how key economic and market statistics drive financial market trends and how to mitigate the risks for businesses that those trends affect. Trading Economics provides guidance for navigating key market figures in a convenient and practical format. Emphasizing the link between economic data and market movements, this book analyzes surveys, economic growth statistics, inflation, labor markets, international trade, monetary and fiscal indicators, and their relevance in financial markets. It bypasses complex terminology to offer a hands-on, accessible introduction to financial statistics and how to profit from them.

  • Offers clear illustrations and an easy-to-read layout to teach you how to trade profitably in financial markets and minimizes risk for your business

  • Written Trevor Williams and Victoria Turton, authoritative public figures with experience working on the New York Stock Exchange

  • Includes a website featuring a blog and new surveys as they develop accompanies the book

  • Complete with worked examples and updated information, Trading Economics is an essential, comprehensive guide to understanding every aspect of financial market trends and how to navigate them to your advantage.

    Note: The ebook version does not provide access to the companion files.

    Table of Contents

    1. Acknowledgements
    2. Introduction
      1. Surprise Indices
      2. Mapping a New Landscape
      3. Note
    3. 1 Surveys
      1. Surveys and Behavioural Economics
      2. Types of Survey
      3. Business Surveys
      4. Consumer Surveys
      5. Conclusion
      6. Notes
    4. 2 Economic Growth
      1. Economic Growth Through the Ages
      2. GDP
      3. What is GDP?
      4. Breaking Down GDP
      5. Why is GDP important? How is It Measured?
      6. Index Numbers of GDP and the Price Deflators Used in Calculating Them
      7. Detailed Breakdown of the GDP Measures
      8. A Market Link
      9. Components of GDP
      10. Conclusion
      11. Notes
    5. 3 Labour Markets
      1. Employment Trends
      2. What has Driven the Change?
      3. Consequences for Economic Growth
      4. Phillips Curve Shows no Durable Trade-Off Exists
      5. NAIRU Matters More
      6. Employment Measures
      7. Why We Measure Unemployment
      8. The Nature of Unemployment
      9. The Impact of Demographics on Labour Markets
      10. Vacancies
      11. Changing Labour Patterns
      12. The UK in Comparison to Its Global Competitors
      13. How do We Extract Value from This?
      14. Conclusion
      15. Notes
    6. 4 Inflation
      1. What is Inflation?
      2. The History of Inflation
      3. Causes of Inflation
      4. Earnings/Wage Inflation
      5. Price Basket
      6. How is Price Inflation Measured?
      7. GDP Deflator
      8. Why so Many Measures of Inflation?
      9. A Focus on the CPI and RPI
      10. Why is Inflation Important?
      11. Deflation
      12. Other Measures of Inflation Targeting
      13. How can We Extract Value from This?
      14. Conclusion
      15. Notes
    7. 5 Monetary Statistics
      1. Monetary Policy and Inflation Management
      2. The UK in a Global Context
      3. Central Bank's Role
      4. What About the Bank of England?
      5. How Monetary Policy Works in the Uk
      6. Decomposition of Money
      7. Why does Money Supply Matter?
      8. Why Is This Sort of Analysis Useful?
      9. A Brief History of Monetary Targeting
      10. How Do We Extract Value from This?
      11. Conclusion
      12. Notes
    8. 6 Fiscal Indicators
      1. A Brief History of UK Fiscal Policy
      2. Measuring Government Debt
      3. Fiscal Policy Impact and Terminology
      4. The Impact of Government on Markets
      5. Fiscal Policy and Growth
      6. The Data We Should Consider
      7. Fiscal Policy in Boom and Bust
      8. Market Relevance
      9. Bank of England Regains Regulatory Powers
      10. What Role Does the Office for Budget Responsibility Play in the Fiscal Policy Process?
      11. The Monetary Policy Committee
      12. Forward Guidance – Another Bank Innovation
      13. The Debt Management Office's Role
      14. Comparison of International Debt
      15. Fiscal Targets Add Credibility to Debt Reduction
      16. How Can We Extract Value from This?
      17. Conclusion
      18. Notes
    9. 7 Global Trade Statistics
      1. What Is a Country's Balance of Payments?
      2. Why Do We Measure the Balance of Payments?
      3. What Does It Mean?
      4. The Concept of the Balance of Payments
      5. UK Is not Alone in Having a Trade Deficit
      6. A Chronic Goods Deficit
      7. A Chronic Services Surplus to Offset (Almost) the Trade Deficit
      8. The Ever-Changing Pattern of Visible and Invisible Trade
      9. Balance of Payments and GDP
      10. Shifting Trade Patterns
      11. How Can We Extract Value from This?
      12. Conclusion
      13. Notes
    10. Conclusion
      1. Be anchored to the data flow
      2. Some key points to take away
      3. Note
    11. Appendices
      1. Appendix 1 Surveys
        1. CBI Industrial Trends Survey
        2. CBI Distributive Trades Survey
        3. Notes
      2. Appendix 2 Bank of England: Agents' Summary of Business Conditions (January 2014)
      3. Appendix 3 Inflation: Contributions to Change in the 12-Month Rate
      4. Appendix 4 Voting on Interest Rates by the Monetary Policy Committee – 1997 to January 2014
      5. Appendix 5 Voting on Asset Purchases Financed with central bank reserves by the Monetary Policy Committee – March 2009 to January 2014
    12. Bibliography
    13. Index
    14. End User License Agreement