How the Economy Works: An Investor's Guide to Tracking the Economy (New York Institute of Finance S.) - Softcover

Mennis, Edmund A.

Softcover

ISBN 10: 0735200769 ISBN 13: 9780735200760

Publisher: NYIF, 1999

Synopsis

Updated to include the most recent available economic data and a whole chapter on using the Internet, this classic guide includes information on everything from what national statistics investors should watch to how they can learn to forecast realistic returns. Original.

About this title

From the Author

Understand the economy and its relationship to investments
The origin of this book was a response to a plea from my son, a graduate engineer who was studying for his MBA, who found he was expected to have an understanding of the economy and its workings but never had taken courses in economics in his undergraduate work. Each chapter was reviewed by my son and my wife (a speech pathologist by profession) and rewritten until they told me they understood the contents - and what a lot of economic jargon fell by the wayside in that process!

This book is written for those who want to know how to make sense out of the flood of economic data available each month and to understand the relationship of these data to the financial markets. The best framework for examining the economy is to use the monthly data available on the demand by the users of GDP (the total output of goods and services in the U.S.): personal consumption, business capital expenditures and inventories, government investment and consumption, and net exports. Critical economic measures for each of these areas are described and charted for a period of years to provide perspective. Interest rates and monetary policy are covered, as well as the federal budget, Social Security and Medicare. Business cycles are reviewed, together with long-term growth trends of the economy. A new chapter for the second edition was written by my son, Liam Mennis, which is devoted to sources of economic information on the Internet. Pitfalls in economic analysis are outlined, as well as a chapter relating the economy to profits. Finally, long-term investment returns for various types of investments are described and charted, and investment goal setting, investment risk and diversification are discussed. The book is not aimed at the professional economist but at the non-economist who is interested in how the economy, profits and the finacial markets operate and relate to each other.

Synopsis

Revised and expanded, this work explains how the US economy functions and interacts with the financial world, and how international economies relate to the US. It also covers the major economic measurements used to track the path of the economy and its relationship to the financial markets.

Edition details

• Publisher: NYIF
• Publication date: 1999
• Language: English
• ISBN 10: 0735200769
• ISBN 13: 9780735200760
• Binding: Paperback
• Edition number: 2
• Number of pages: 320