From the previous post where I showed that Net exports also reflect the effective demand limit, I received some email questions. I was planning on posting an explanation, but now I will just post my quick reponses to the email questions.

Effective Demand = $17.613 trillion

Real GDP = $16.842 trillion

Productive Capacity is rising to next business cycle = $23.285 trillion

UT index is rising = +3.9%

Effective demand limit = 76.2%

TFUR = 72.3%

ED Fed rate rule (down from a peak of 3.8% in 2014) = 1.4%

Estimated Natural Real Interest rate = 2.0%

Short-term real interest rate (fallen from 2.8% peak in 2014) = -0.3%

There is no recession for 1stQ-2017. I am expecting a recession by end of 2017.

Click on Graphs below to see updated data at FRED.

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Edward Lambert: Independent Researcher on Effective Demand.

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- Effective Demand Model did very well
- Watching the Craziness
- Inflation as a Mouse not being Chased
- Projecting a Fed Rate Path
- One trend toward a Recession: yoy % change of U3 & U6
- Picture of Output gap from Effective Demand
- Repost from June 2014: Defining Effective Demand as Keynes saw it
- Yellen wants to understand effective demand
- A glitch in the IS-LM model
- Larry Summers is beginning to see Effective Demand