Macroeconomics Knowledge Model

Overview

The Macroeconomics Knowledge Model (display name: Macroeconomics EN v#) aims at classifying English texts based on macroeconomic topics and extracting relevant macroeconomic indicators.

Categorization

This is the category tree:

1100 Economic activity
    1110 Output 
    1120 National & household income 
    1130 Economic outlook 
        1131 Growth  
        1132 Recession 
1200 AD-AS model 
    1210 Aggregate demand
        1211 Consumption
        1212 Investment 
        1213 Government spending
    1220 Aggregate supply
1300 Labor market 
    1310 Unemployment
1400 Price levels
    1410 Inflation 
    1420 Deflation
1500 International finance
    1510 Foreign investments
    1520 Currency exchange rates
    1530 International trade sanctions
1600 Energy and environmental policy
1700 Economic policy
    1710 Fiscal policy 
    1720 Monetary policy
    1730 Demand-side and supply-side policy
    1740 National budget and public debt
1800 International trade
    1810 Imports
    1820 Exports

Economic activity category gathers estimates and perspectives of total economic processes at a national or international level. It includes the following sub-categories:

Output: the total output of a nation based on the total value of all goods and services produced by a nation.
National & household income: income and general wealth distribution at a national and household level.
Economic outlook: comprises other two sub-categories, Growth and Recession, that refer to macroeconomic projections and economic states based on an economy's performance at a national and international level.

The AD-AS model category refers to the "Aggregate demand" and "Aggregate supply" model of macroeconomics, a fundamental tool that provides an overall framework for viewing economic factors as a whole. This category comprehends the following sub-categories:

Aggregate demand: total spending on domestic goods and services in an economy, from the perspective of the government. The category comprises:
- Consumption
- Investment
- Government spending
Aggregate supply: domestic final supply of goods and services.

The Labor market category classifies information on the dynamics of the markets for wage labor. It refers to concepts such as employment level, labor force and labor participation rate. This category as the Unemployment sub-category that refers to the level of unemployment divided by the labor force.

The Price levels category refers to the buying power of money and the average of current prices across the spectrum of goods and services produced in an economy. This category is divided into:

Inflation: decline of purchasing power of a given currency over time, which can be reflected in the increase of an average price level of selected goods.
Deflation: increase of purchasing power of a given currency over time, which can be reflected in the decline of an average price level of selected goods.

The International finance category refers to the branch of financial economics concerned with monetary and macroeconomic relations between countries. It's about the dynamics of the global financial system, balance of payment, exchange rates, foreign direct investment and their relation to international trade. This category is divided into:

Foreign investments: cross-border investments made by a country or company into a foreign concern.
Currency exchange rates: policies and interventions made by the government on the currency market.

Tip

For more specific information about currencies see the Currencies & Cryptocurrencies Knowledge Model.
International trade sanctions: laws and penalties that are passed to restrict or abolish trade with certain countries.

The Energy and environmental policy category refers to energy-related policies and macroeconomic dynamics like energy demand and supply. It also comprises policy-induced environmental innovations and decisions.

The Economic policy category covers the systems for setting levels of taxation, government budgets, and money supply. It also comprises policies that help adjust markets. This category is divided into the following sub-categories:

Fiscal policy: use of government revenue collection and expenditure to influence a country's economy.
Monetary policy: policy adopted by the monetary authority of a nation to control the money supply or the interest rates for short-term borrowing.
Demand and supply-side policy: all government attempts to increase productivity and increase efficiency in the economy, such as initiatives that create jobs or tax cuts.
National budget and public debt: government’s anticipated and proposed spending for the fiscal year and its financial liabilities.

The International trade category is about the exchange of capital, goods, and services across international borders, which are accounted for in a country's current account in the balance of payments. This category is divided into two sub-categories:

Imports: goods and services bought in one country that were produced in a different country.
Exports: goods and services produced within the boundaries of one country, which are traded with another country.

Extraction groups and classes

Naming conventions

All extraction groups and their classes are listed below.
The names of the groups and classes are self-explanatory. In groups that include classes with names ending in _by, _vlaue, _rate or _ratio, those classes extract the amount of up/down variations or values, while the other classes extract the portion of text that specifies the indicator or what value or variation it is.

For example, from the text:

And the cost of food-which makes up about one third of the consumer price index baskets grew 1.6 percent over the past year, versus 9.1 percent in other regions.

a CPI group record is extracted with these classes:

Class	Extracted value
CPI	consumer price index
CPI_up	grow
CPI_up_by	1.6 percent

GDP

This group extracts information related to the gross domestic product (GDP).
These are its classes:

GDP
GDP_value
GDP_up
GDP_up_by
GDP_down
GDP_down_by
GDP_per_capita
GDP_per_capita_value
GDP_per_capita_up
GDP_per_capita_down
GDP_per_capita_up_by
GDP_per_capita_down_by

National_income

This group extracts information on net national income (NNI).
These are its classes:

NNI
NNI_rate
NNI_up
NNI_up_by
NNI_down
NNI_down_by
GNI
GNI_rate
GNI_up
GNI_up_by
GNI_down
GNI_down_by
household_income
household_income_rate
household_income_up
household_income down
household_income_up_by
household_income_down_by
per_capita_income
per_capita_income_rate
per_capita_income_up
per_capita_income_down
per_capita_income_up_by
per_capita_income_down_by

labor_market

This group extracts information on the labor market.
Its classes are:

unemployment
unemployment_rate
unemployment_up
unemployment_down
unemployment_up_by
unemployment_down_by
employment
employment_rate
employment_up
employment_down
employment_up_by
employment_down_by
labor_force_participation
labor_force_participation_rate
labor_force_participation_up
labor_force_participation_up_by
labor_force_participation_down
labor_force_participation_down_by
remote_workers
remote_workers_rate
remote_workers_up
remote_workers_up_by
remote_workers_down
remote_workers_down_by

Inflation

This group extracts information on inflation, consumer price index (CPI) and product price index (PPI).
Its classes are:

inflation
inflation_rate
inflation_up
inflation_down
inflation_up_by
inflation_down_by
CPI
CPI_rate
CPI_up
CPI_down
CPI_up_by
CPI_down_by
PPI
PPI_rate
PPI_up
PPI_down
PPI_up_by
PPI_down_by

Economic_health

This group extracts information on the Purchasing Managers' Index (PMI).
Its classes are:

PMI
PMI_rate
PMI_up
PMI_down
PMI_up_by
PMI_down_by
PMI_up_to
PMI_down_to

Balance_of_payments

This group extracts information on the balance of payments.
Its classes are:

current_account
current_account_value
current_account_surplus
current_account_surplus_value
current_account_deficit
current_account_deficit_value
capital_account
capital_account_value
capital_account_surplus
capital_account_surplus_value
capital_account_deficit
capital_account_deficit_value
current_and_capital_account_value

Public_debt

This group extracts information on public debt.
Its classes are:

public_debt
public_debt_value
public_debt_up
public_debt_down
public_debt_up_by
public_debt_down_by
debt_to_GDP
debt_to_GDP_ratio
debt_to_GDP_ratio_up
debt_to_GDP_ratio_down
debt_to_GDP_ratio_up_by
debt_to_GDP_ratio_down_by

Trade_entities

This group extracts international trading entities.
Its only class is:

international_trade_entity

Macroeconomists_people

This group extracts names of macroeconomists or politicians who deal with macroeconomics.
Its classes are:

macroeconomist
politician

Macroeconomic_models

This group extracts mentions of macroeconomic models.
Its only class is:

macroeconomic_model

Macroeconomic_schools

This group extracts mentions of macroeconomic schools.
Its only class is:

macroeconomic_school

Output structure

The model output has the same structure as any other model and is affected by the functional properties of the workflow block.
The peculiar parts of the output are the result of categorization, i.e. the categories array, and the result of information extraction, i.e. the extractions array.

Examples

Example of categorization output:

"categories": [
    {
        "frequency": 1.62,
        "hierarchy": [
            "Economic activity"
        ],
        "id": "1100",
        "label": "Economic activity",
        "namespace": "macroeconomics_en",
        "positions": [
            {
                "end": 2510,
                "start": 2493
            }
        ],
        "score": 10,
        "winner": true
    },
    {
        "frequency": 1.62,
        "hierarchy": [
            "Economic activity",
            "Economic outlook",
            "Growth"
        ],
        "id": "1131",
        "label": "Growth",
        "namespace": "macroeconomics_en",
        "positions": [
            {
                "end": 2188,
                "start": 2171
            }
        ],
        "score": 10,
        "winner": true
    },
    {
        "frequency": 1.62,
        "hierarchy": [
            "Economic activity",
            "Economic outlook",
            "Recession"
        ],
        "id": "1132",
        "label": "Recession",
        "namespace": "macroeconomics_en",
        "positions": [
            {
                "end": 4362,
                "start": 4353
            }
        ],
        "score": 10,
        "winner": true
    },
]

In the extraction output, the template key corresponds to the concept of group and template fields correspond to classes.
For example:

"extractions": [
    {
        "fields": [
            {
                "name": "CPI",
                "positions": [
                    {
                        "end": 3003,
                        "start": 3000
                    }
                ],
                "value": "CPI"
            },
            {
                "name": "CPI_up",
                "positions": [
                    {
                        "end": 3045,
                        "start": 3041
                    }
                ],
                "value": "rise"
            }
        ],
        "namespace": "macroeconomics_en",
        "template": "inflation"
    },
    {
        "fields": [
            {
                "name": "unemployment",
                "positions": [
                    {
                        "end": 598,
                        "start": 581
                    }
                ],
                "value": "unemployment rate"
            },
            {
                "name": "unemployment_down",
                "positions": [
                    {
                        "end": 603,
                        "start": 599
                    }
                ],
                "value": "fall"
            },
            {
                "name": "unemployment_down_by",
                "positions": [
                    {
                        "end": 619,
                        "start": 607
                    }
                ],
                "value": "4.2%"
            }
        ],
        "namespace": "macroeconomics_en",
        "template": "labor_market"
    },
]