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The IW business cycle traffic lights: The state of the economy at a glance

Author

Listed:
  • Cholewa, Jan
  • Goecke, Henry
  • Grömling, Michael

Abstract

There is no lack of information for diagnosing the development of an economy. The problem is more one of obtaining a concise summary. The IW Business Cycle Traffic Light captures at a glance the changes in important economic indicators for Germany, the Eurozone, the USA and China. This can only be achieved by establishing which improvements and deteriorations in the short-term development of the economy can be defined as relevant. Like its individual underlying indicators, the IW Business Cycle Traffic Light represents the status of information a varying number of months ago, thus partly reflecting the inevitable recognition lags in business cycle diagnosis.

Suggested Citation

  • Cholewa, Jan & Goecke, Henry & Grömling, Michael, 2016. "The IW business cycle traffic lights: The state of the economy at a glance," IW-Reports 2/2016, Institut der deutschen Wirtschaft (IW) / German Economic Institute.
    • Handle: RePEc:zbw:iwkrep:22016
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    File URL: https://www.econstor.eu/bitstream/10419/157163/1/IW-Report-2016-02.pdf
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    JEL classification:

    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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