The men's underwear index (MUI) is an
economic index that can supposedly detect the beginnings of a
recovery during an
economic slump. The premise is that men's
underwear
Underwear, underclothing, or undergarments 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 clothing from being soiled ...
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. A period during which goods are sold for a reduced price may also be referred ...
remain stable. During a severe
downturn
In economics, a recession is a business cycle contraction that occurs when there is a period of broad decline in economic activity. Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be tr ...
,
demand
In economics, demand is the quantity of a goods, good that consumers are willing and able to purchase at various prices during a given time. In economics "demand" for a commodity is not the same thing as "desire" for it. It refers to both the desi ...
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 United States, American public finance, discretionary spending is government spending implemented through an Appropriations bill (United States), appropriations bill. This spending is an optional part of fiscal policy, in contrast to social ...
for
consumption
Consumption may refer to:
* Eating
*Resource consumption
*Tuberculosis, an infectious disease, historically known as consumption
* Consumer (food chain), receipt of energy by consuming other organisms
* Consumption (economics), the purchasing of n ...
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 worked as a private adviser and provided consulting for firms through his company, Greenspan Associates L ...
.
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 currency, currencies and providing a test of the extent to which market exchange rates re ...
*
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 ...
*
Lipstick index
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
Men's underwear
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