CPI

Prices, Inflation and Deflation: Great Depression vs Great Recession

Another infographic comparing the last 18 months to the Great Depression. This time I am focusing on Prices, Inflation and Deflation.

Inflation 1930s
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Nominal vs Real 3-Month Interest Rate: 1934-2008

View Nominal vs Real 3-Month Interest Rate updated to 2010

I have plotted the 3-Month T-bills: Secondary Market rate (green line) vs the inflation adjusted (i.e. Real) 3-Month T-bills rate (orange) from Jan 1934-Sept 2008. The inflation number I used is CPI-U 3-month % change multiplied by 4.

Real Interest Rates
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Inflation vs Unemployment: McCabe Years

I have plotted the annual inflation (CPI-U) vs unemployment. The green line represents the time Thomas B. McCabe was the Fed Chairman (April 15, 1948 – April 2, 1951). The gray line represent the years 1948-2007.

In traditional economic theory, the Phillips curve describes the inverse relationship between inflation and unemployment, i.e. when inflation is high, unemployment is low. This was true in the United States in the 60s but not other time periods

{Click on the image to take a closer look}
McCabe Years magnifying glass

Data from Bureau of Labor Statistics

[tags]United States, Inflation, Unemployment[/tags]

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