National Bureau of Economic Research

Definition

The National Bureau of Economic Research (NBER) is a private, non-profit research organization based in the United States that is dedicated to studying the economy and providing key economic data and analysis. It plays a vital role in business and economic journalism by identifying business cycles, conducting economic research, and disseminating findings that inform public policy and market expectations.

5 Must Know Facts For Your Next Test

1. The NBER is widely recognized for its authority in dating business cycles in the U.S., determining when expansions and recessions begin and end.
2. It publishes a range of research papers that cover various topics in economics, including labor markets, international trade, and healthcare economics.
3. The NBER's findings influence both government policy decisions and financial markets, making its research essential for journalists covering economic issues.
4. It operates several programs that focus on different aspects of economics, including macroeconomics, health economics, and productivity.
5. The organization has been instrumental in providing real-time data that helps economists and policymakers react to changes in the economy swiftly.

Review Questions

• How does the National Bureau of Economic Research contribute to understanding business cycles in the U.S. economy?
  • The National Bureau of Economic Research contributes to understanding business cycles by systematically identifying and dating the phases of economic expansions and contractions. Their rigorous research methodology allows them to analyze various economic indicators to pinpoint when the economy is entering or exiting a recession. This information is crucial for policymakers and business leaders as it aids in making informed decisions based on economic conditions.
• In what ways do the research findings from the NBER impact public policy decisions?
  • Research findings from the NBER impact public policy decisions by providing empirical evidence that informs lawmakers about current economic conditions. For instance, when NBER reports indicate a potential recession or inflationary pressures, policymakers can tailor fiscal or monetary policies accordingly to mitigate negative effects. Additionally, NBER's insights into labor markets or healthcare can lead to reforms aimed at enhancing economic stability and growth.
• Evaluate the significance of the NBER's role in shaping economic discourse among journalists and economists.
  • The significance of the NBER's role in shaping economic discourse lies in its provision of credible, research-based information that influences how journalists report on economic issues. By disseminating findings on critical topics such as unemployment or inflation rates, the NBER helps establish a foundation for informed discussions among economists and the media. This connection not only enhances public understanding of complex economic concepts but also promotes transparency in how economic data is interpreted, ultimately contributing to a more informed citizenry.

Related terms

Business Cycle: The fluctuations in economic activity characterized by periods of expansion and contraction in a country's economy.

Economic Indicators: Statistical metrics used to assess the health of an economy, including GDP, unemployment rates, and inflation.

Recession: A significant decline in economic activity across the economy that lasts for an extended period, typically visible in GDP, employment, and production.