Misery Index
A measure of economic well-being for a specified economy, computed by taking the sum of the unemployment rate and the inflation rate for a given period. An increasing index means a worsening economic climate for the economy in question, and vice versa.
Investopedia Says:
The index was initiated in the 1970s by a U.S. economist named Robert Barro and was used to characterize the current economic condition. The main assumption in this index is that an increasing unemployment rate and relatively high inflation have a negative impact on economic growth. At its highest, the misery index for the U.S. was at 21.98% in June 1980. At its lowest, it was 2.97% in July 1953. In March 2006, the index was at 8.1%.
In economic terms, a rise in inflation coupled with high unemployment leads to lower consumer expenditures and contributes to an economic slow-down. Related Terms:
Blue Collar
Consumer Price Index - CPI
Economic Growth
Economy
Inflation
Personal Consumption Expenditures - PCE
Stagflation
Unemployment Rate |