After Words with Zachary Karabell

Zachary Karabell talked about his book, The Leading Indicators: A Short History of the Numbers that Rule Our World, in which he argues that gross national product, balance of trade, unemployment, inflation, and consumer confidence should no longer be the primary basis for business plans or monetary policy. He argued that the information revolution has made considerably more data available. He spoke with Wall Street Journal reporter Kimberly Strassel.

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The Leading Indicators

n today's uncertain economy, both the public and the world's leaders rely heavily on certain indicators to tell us how we are doing. Gross national product, balance of trade, unemployment figures, inflation, and the consumer price index determine whether we feel optimistic or pessimistic about our future and dictate whether businesses hire or hunker down, governments spend trillions or try to reduce debt, and individuals buy a car, get a mortgage, or look for a job. Yet few of us know where these numbers come from, what they mean, or why they rule our world.

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25 for 25: Leave the Big Numbers to Janet Yellen

There's a small problem with numbers we use to measure the economy. You know, those numbers you hear on Marketplace every day. "One simple number is never going to capture simple reality," says Zachary Karabell, historian and economist and author of "The Leading Indicators: A short history of the numbers that rule our world."

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The State of Emerging Markets: Up, Down, and Up—but Still Forward

The start of the year has not been an easy one for financial markets. The Federal Reserve is continuing its policy of trimming its bond purchases by $10 billion a month, and the immediate result has been a sharp pullback of the currencies, and to some degree equities, of countries such as Indonesia, Turkey, India, South Africa and Argentina. The reason? According to traders, commentators, and even the head of Brazil’s central bank, Fed policy will trigger interest rate rises around the world, staunching the flow of easy money that has purportedly fueled global growth — and leading to struggles everywhere

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If the World Is Getting Richer, Why Do So Many People Feel Poor?

In a widely-read statement in his annual foundation letter, Bill Gates took an unabashedly optimistic approach to the world this week. Not only did he tout the massive material progress evident everywhere in the world over the past decades, but he also predicted that as more countries accelerate their transformation from rural poverty to urban middle class societies, poverty as we know it will disappear within the next two decades. “By 2035, there will be almost no poor countries left in the world,” Gates wrote. “Almost all countries will be what we now call lower-middle income or richer.”

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