Monday, November 8, 2010

Leading Indicator of Divergent Economic Growth?


This is a short, somewhat puzzling article that was published today:

Hannon, Paul, 2010. OECD: leading economies to diverge. The Wall Street Journal, Nov. 8.

The article claims that through analysis of leading indicators the OECD predicts that China and Brazil will lag in economic growth.

From the article:

"The OECD's leading indicators are designed to provide early signals of turning points between the expansion and slowdown of economic activity. They are based on a wide range of data series that have a history of signaling changes in economic activity."

If true, the divergence in growth among the global economies has significant implications especially in currency markets and macroeconomic policy This is s trend to watch closely.

No comments:

Post a Comment