THE DOW JONES-IRWIN GUIDE TO USING THE WALL STREET JOURNAL, 2nd Ed.

by Michael B. Lehmann ‧ RELEASE DATE: Jan. 5, 1986

A first-rate lesson in economic fundamentals as well as an instructive companion piece to The Wall Street Journal. Lehmann (economics/Univ. of San Francisco) uses the four major phases of the business cycle, from recovery through contraction, to shed light on the Journal's coverage of economic news. Each chapter focuses on one or more statistical series--GNP, industrial production, employment, the CPI, personal income, producer prices, et al. With the aid of articles published during the first half of 1986, plus a wealth of tabular material, the author explains how these key indicators relate to one another and the big picture. For example, he notes that auto sales, consumer credit, housing starts, and related measures tend to exhibit strength in the expansion phase of a business cycle. In response to the resultant boom in demand for goods and services, Lehmann points out, capacity utilization rises while labor productivity declines, boosting costs and helping to set the stage for the next bust. Also reviewed are the Federal Reserve System and its efforts to control the money supply, inventories, capital expenditures, corporate earnings, securities and futures markets, international trade, and fiscal policy. Lehmann leavens his briefings with a peck of judgment calls. Commenting on the the efficacy of controls, for instance, he observes that profits ""measure efficiency, not greed."" The bottom line: an agreeably soft sell for the Journal, and a fine primer for economic novices and seasoned hands alike.

Pub Date: Jan. 5, 1986

ISBN: N/A

Page Count: -

Publisher: Dow Jones-Irwin

Review Posted Online: N/A

Kirkus Reviews Issue: Jan. 1, 1986

Categories: NONFICTION