• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Review of Beating the Business Cycle

Extracts from this document...

Introduction

Review of Beating the Business Cycle An Evaluation of Beating the Business Cycle by Lakshman Achulthan and Anirvan Banerji October 21, 2004 Beating the Business Cycle by Authors Lakshman Achulthan and Anirvan Banerji provides an intricate description of how the ECRI (Economic Cycle Research Institute) forecast economic growth and market turns so business managers and individuals alike can predict and profit from future changes in the economy. Using approximately 100 objective indexes and economic indicators such as stock price, imports, exports, foreign trade, manufacturing and real estate the ECRI is well known for their accuracy in predicting economic changes. To highlight a few of their successes the ECRI was able to predict the U.S. recession of 2001 and 1991 approximately six months before economists did. They were also reputed for predicting a weak recovery in 2002. (cover page) The following is a list of the ECRI's record of previous predictions. Achuthan and Anirvan's contribution will broaden your understanding of today's business cycle and enlighten you of its effects on financial markets and the U.S. ...read more.

Middle

The WLI is thought to be the most accurate indicator available and leads turning points in the economy by eight months. In short, the WLI predicts upswings and downswings economic growth. If the WLI drops below zero it is identifying an upcoming recession. (pg 139) (ECRI) The Future Inflation Gauge is designed to predict future changes in the inflation rate. An upward swing in the index indicates an increase in inflation and downward swing will indicates a decrease in inflation. It is important that is indicator is closely monitored as inflation is directly related with interest rates. (Pg. 136) Together these two indicators are essential for accurately assessing cyclical change so individuals and small businesses can navigate though the peaks and troughs of the economy. (Pg. 136) Having an understanding that inflation pressures affect interest rates and the Federal Funds Rate will help investors, finance managers and individuals make better economic decisions. Being able to evaluate this data will help them decide when to invest, buy a new house or car, and when to take out a new business loan. ...read more.

Conclusion

Persistency can then be identified if the movements take place over a period of approximately three or four months. (Pg. 138) In my opinion, the most valuable segment of this book is the real life scenarios discussed in Chapter 9. Illustrating a list of occupational and personal situations the authors provide advice and a logical course of action by evaluating WLI and FIG data. Such advice is given on situations from how and when to invest, when to take a vacation, when should one stay in school or start looking for a career change, to corporate decision making in various industries. Being able to make effective financial decisions is not only a key component in becoming a successful manager but it is a key component in becoming successful period. This book has helped me to understand how to evaluate the economy and make optimal decisions personally, as well as professionally. I would recommend this book to anyone who wants to become successful in life. 2 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. Economics - Classical School of Thought, Keynesian School of Thought, Supply Side School of ...

    The goal is to achieve and maintain price-level stability, full employment, and economic growth. Theories Several theories have emerged from Monetarist view such as the Quantity Theory of money based on the Fisher Equation of Exchange and an augmented-Phillips Curve.

  2. Changes in the business environment and their impacts on business strategies.

    All these factors are shifting the balance of services that are offered by suppliers and those that are required by customers. The electricity market is maturing and changing and is forcing companies to look at their revenue streams and reassess their current positions.

  1. Global Business Plan.

    Our production facility will be in Shanghai of Tianjin. The air conditioners will be trucked to Shanghai unless there is a large number of backorders. At this time, we would air freight the equipment. Shanghai is about 600 miles from Beijing so it would take our drivers at least two days to reach our distribution site in Tianjin.

  2. Free essay

    Globalisation & changing career patterns

    Fig 1: Source - World Bank Figure 1 above, shows the comparison of a number of countries GDP rates, sampled in 2002. The GDP is the total value of goods and services produced by a nation per annum. This graph, shows that Saudi Arabia, Mexico, Argentina, Russia, South Africa, Iran,

  1. REGULATION OF BUSINESS

    > Privatisation State control lasted forty years until 1989, however the need to promote competition in generation and in retail electricity supply, and to separate the transmission from the generation, led the Thatcher Conservative Government to privatise this industry. Several steps were taken before the complete privatisation of the electricity industry.

  2. Scarcity and Unlimited Wants.

    * Average revenue, AR, is the amount received from selling one item and equals the selling price of the good. * Marginal Revenue, MR. Equations TC = VC + FC VC = TC - FC FC = TC - VC AC = TC/Q TR = P x Q AR =

  1. The Quest for Optimal Asset Allocation Strategies in Integrating Europe.

    EMU for the optimal diversification strategy of a mean-variance optimising investor in Europe? In order to address this broad research question, I will try to answer the following sub questions: * Is it possible to construct a more efficient portfolio by diversifying over EU industry sectors, rather than diversifying over the country indices of the EMU member states?

  2. Business Cycles& the British Economy - What are business cycles?

    To a business which is considering expanding, understanding this can mean the difference between prospering and going bankrupt. What causes business cycles? There are several theories for what causes a business cycle and they are split into two categories: * External (Exogenous)

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work