an index that tracks economic conditions including inflation and unemployment. It was particularly referred to in the economically depressed period of 1977 through 1981 in the United States. The inflation rate was in the double digits at that time.
Misery Index = Inflation Rate + Unemployment Rate + Prime Rate
The index typically is negatively correlated to the current condition of the stock market. The misery index has little value as a predictor of future stock prices. The index may be found in the Bureau of Labor Statistics publications and The Wall Street Journal.
index that combines the unemployment and inflation rates. The index was devised in the 1970s when both inflation and unemployment rose sharply. The misery index is often credited with political significance, since it may be difficult for a president to be reelected if there is a high misery index. The misery index is also linked to consumer confidence-the lower the index, in general, the more confident consumers tend to be.