The men's underwear index (MUI) is an
economic index that can supposedly detect the beginnings of a
recovery
Recovery or Recover may refer to:
Arts and entertainment Books
* ''Recovery'' (novel), a Star Wars e-book
* Recovery Version, a translation of the Bible with footnotes published by Living Stream Ministry
Film and television
* ''Recovery'' (fil ...
during an
economic slump
An economy is an area of the production, distribution and trade, as well as consumption of goods and services. In general, it is defined as a social domain that emphasize the practices, discourses, and material expressions associated with the p ...
. The premise is that men's
underwear
Undergarments, underclothing, or underwear are items of clothing worn beneath outer clothes, usually in direct contact with the skin, although they may comprise more than a single layer. They serve to keep outer garments from being soiled o ...
are a necessity in normal economic times and
sales
Sales are activities related to selling or the number of goods sold in a given targeted time period. The delivery of a service for a cost is also considered a sale.
The seller, or the provider of the goods or services, completes a sale in r ...
remain stable. During a severe
downturn
In economics, a recession is a business cycle contraction when there is a general decline in economic activity. Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be triggered by various ...
,
demand
In economics, demand is the quantity of a good that consumers are willing and able to purchase at various prices during a given time. The relationship between price and quantity demand is also called the demand curve. Demand for a specific item ...
for these goods changes as new purchases are deferred. Hence, men's purchasing habits for underwear (and that of their spouses on their behalf) is thought to be a good
indicator
Indicator may refer to:
Biology
* Environmental indicator of environmental health (pressures, conditions and responses)
* Ecological indicator of ecosystem health (ecological processes)
* Health indicator, which is used to describe the health o ...
of
discretionary spending
In American public finance, discretionary spending is government spending implemented through an appropriations bill. This spending is an optional part of fiscal policy, in contrast to social programs for which funding is mandatory and determine ...
for
consumption
Consumption may refer to:
*Resource consumption
*Tuberculosis, an infectious disease, historically
* Consumption (ecology), receipt of energy by consuming other organisms
* Consumption (economics), the purchasing of newly produced goods for curren ...
at large especially during turnaround periods.
This indicator is noted for being followed by former Federal Reserve Chairman,
Alan Greenspan
Alan Greenspan (born March 6, 1926) is an American economist who served as the 13th chairman of the Federal Reserve from 1987 to 2006. He works as a private adviser and provides consulting for firms through his company, Greenspan Associates LLC. ...
.
See also
*
Big Mac index
The Big Mac Index is a price index published since 1986 by ''The Economist'' as an informal way of measuring the purchasing power parity (PPP) between two currencies and providing a test of the extent to which market exchange rates result i ...
*
Hemline index The hemline index is a theory that suggests that skirt length (hemlines) rise or fall along with stock prices. The most common version of the theory is that skirt lengths get shorter in good economic times (1920s, 1960s) and longer in bad, such as a ...
*
Lipstick index The lipstick index is a term coined by Leonard Lauder, chairman of the board of Estee Lauder, used to describe increased sales of cosmetics during the early 2000s recession. Lauder made the claim that lipstick sales could be an economic indicator, ...
References
External links
Alan Greenspan's Underwear Drawer January 1, 2008*
ttp://www.huffingtonpost.com/2009/09/04/unemployment-hits-97-as-e_n_277218.html May 25, 2011 Unemployment Rate Hits 9.7 Percent As Economy Sheds 216,000 Jobs In August By Arthur Delaney
Economic indicators
Undergarments
Men
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