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 is a 10-year veteran and Market Technician who actively manages money incorporating Technical Analysis and Behavioral Finance into his practice. JC’s work has been featured regularly on CNBC, Fox Business, Bloomberg, Business News Network, Wall Street Journal and Yahoo Finance among many other financial media outlets. More...
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