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13

Ken Hartzfeld and Brian Legarth

This graph examines the interest rate on large loans from the London [Bank] interbank market over a monthly basis. Generally, higher interest rates indicate that the economy is stable enough to handle them. Looking at the graph you can recognize that interest rates haven't been above 2% since the Great Recession, and in the last data collection, they have broken the 2% barrier. This is indicating that the global economy is strong.

A secondary market is where individuals buy and sell securities that they own. Most common secondary markets are the NYSE or NASDAQ. The Secondary market rate measures the price of stocks being exchanged. The Secondary market rate in this graph has also increased above the 2% mark for the first time since the Great Recession, which indicates that people are spending more and with more trust in a stable economy.

These two graphs both show rates at which financial transactions take place. LIBOR [The London Bank] measures interest rates while the secondary market rate measures stock exchange prices. Both are strong indicators of an economy's stability and growth potential. These two graphs are showing strong signals of a growing economy both domestically and internationally. If I were the hypothesize, the graphs will continue to rise, but if they get too high it is grounds for concern as they could crash again as they did in the Great Recession.

19

Brian Legarth and Kenneth Hartzfeld

CPI is the weighted average of prices of a host of consumer goods, such as goods, services, transportation, and medical care. It is a general metric of the price that living costs. CPI is used in the calculation of changes in costs of living, and is an important teller of inflation and deflation.

The currency in circulation metric measures the total value of coins and cash bills that have ever been issued subtracted by that which the government has removed from circulation. Currency in circulation is a very small portion of the actual money being transferred in today's economy that is widely digital. Since the Great Recession of 2008, the Currency in Circulation has nearly doubled.

Both metrics are used to show inflation and deflation, but in terms of currency in circulation, the value has almost doubled over the last 10 years, while the CPI has only grown by about 20%. CPI seems to be the more accurate metric for inflation growth, as inflation hasn't doubled in the last 10 years.