Misery Index – Unemployment + Inflation
- Posted by JC Parets
- on June 21st, 2011
The Misery Index is an economic indicator found by adding the unemployment rate to the inflation rate. It is assumed that both a higher rate of unemployment and a worsening of inflation create economic and social costs for a country. Tom Brakke at the Research Puzzle put together a nice chart of the Misery Index going back to the early 1970s:
When it comes to measuring the combination of unemployment and inflation, it doesn’t get much more miserable than this. Misery right now is at a 28-year high, reflective of how weak the economic recovery has been and how far there is to go (CNBC)
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J.C. Parets is the Founder & President of Eagle Bay Capital, LLC. He earned the Chartered Market Technician designation (CMT) and is a member of the Market Technicians Association. More
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