The EconDash Process:

We at EconDash work hard to give you easy-to-understand and meaningful information. In what ways do we do this?

We chose the key data for you, and put it in perspective.

Quick interpretation of data - Sure, anybody can tell you raw data, like that the PPI rose 0.7% last month, but what does that mean? Is the 0.7% good, or bad? Users of EconDash can tell in an instant what the value means for the economy, by comparing to values taken over the short term (last five years) or the long term (last twenty years). You choose the time period. EconDash also avoids sound-bite reporting which shows data for only the last 6 months or year, not enough to get a true perspective.

Take this chart as an example of how this works:

Or, when ordered, the set of numbers becomes {2, 2, 3, 3, 4, 5, 6, 9}. 25% of the numbers lie below 3, and 25% of the numbers lie above 5. Assuming that higher is better, any number below three will lie in the red, and any number above five will lie in the green. Since each of those also take up 25% of the graph, the boundaries indicated would be 2 and 6. As you can see, two values (6 and 9) lie "off the scale," and so would be indicated by an arrow.

Data is converted into its most useful form - Our data adjusts for inflation and seasonal changes; this way, whether it is just before christmas or the middle of the winter, 1930 or 2001, the data will mean the same thing. We also use percent change to reveal more useful data; many issues, such as productivity, generally increase over time. A real indicator of progress is the rate at which they change. In some cases, data is presented as a percentage of GDP; this also allows numbers to be more accurately compared historically. See how this impacts the data you see:

Above shows the difference that making data into a percent change makes. The graph on the left shows relatively little change during times of recession and times of boom. However, the graph on the right clearly indicates the recession in the early 1980s, and shows the recent extended boom period. By using moving averages (in this case a four-month average), we also help to get rid of the noise produced by simply plotting the data.

As you can see by the above plots, there is a significant difference between "nominal" interest rates and "real" (or inflation adjusted) interest rates. It is the real interest rates that are significant; the nominal ones (not adjusted) may be misleading in times of great inflation.