How to Read the Wall Street Journal for Global Vision

1. Daily Reading- Scan the news summaries on the front page of the print edition under the column "What’s News"
column on the left or under “Economy” in the online edition. Learn to detect which articles are micro-oriented
(particular companies, industries, or markets) and which ones are macro, dealing with the movement of the whole
economy. Highlight or place a star by the macro-oriented summaries, and get a feeling for the context of macro-
events being reported on. Quickly read the articles that look most interesting and relevant.
2. Critical/Interactive Reading- About twice a week, select the most interesting and relevant macroeconomic article
from the past several issues. Download and print out the select article or cut it out of the print edition, and staple it
into your WSJ notebook. As you read the article, look for statements about: what is happening (observations), why it
is happening (causes), what might happen in the future (forecasts), and what officials should do about it (policies).
Look for different perspectives within the article of what is happening and its significance, why it is happening,
forecasts, and policy actions.
3. Critical Analysis of Statements about what is happening (observations)
a) What evidence or indicator is being used to back up the observation?
b) Is there a table with data to check on the validity of the observational statement?
c) Are there observational statements elsewhere in the article that support it, contradict it, or diminish its
significance?
4. Critical Analysis of Statements about Why it is happening (causes).
a) What is the cause-and-effect argument being made by the reporter or by the person being quoted in the paragraph?
Sympathetically sketch out the cause-and-effect relationship. Use words, your own short-hand diagrams, and
relevant diagrams developed in class to demonstrate cause-and-effect.*
b) What theoretical view of the macro-economy is the statement most closely coming from? (As we learn different
theories, you will become good at identifying what theoretical perspective is behind a causal statement.)
c) After understanding each causal statement in the article on its own terms, compare the different statements. Do
they all support each other or is there disagreement over what is causing the phenomenon to happen? Outline
areas of agreement and disagreement. Are disagreements due to different theoretical (causal) views, or are those
interviewed using the same causal perspective but drawing on different evidence? Point to agreements and
disagreements jotting down notes.
d) What is the most plausible view of what is causing the phenomenon to happen? What evidence and theoretical
perspective are you using to back up your causal argument? Scribble this in your notes.
5. Critical analysis of predictions.
a) What is being predicted will happen in the future?
b) What evidence and causal reasoning is behind the prediction?
c) Are there conflicting predictions in the article? If so, are the differences based on different evidence or a different
theoretical views of how the macro-economy works? Draw arrows pointing to points of difference and scribble
reasons behind these.
d) What are your predictions, and what evidence and cause and effect reasoning can you give to support them?
Scribble these. You may want to refer back to other articles you have read for support.

*As a rule of thumb, to really master a macroeconomic principle you must correctly apply it
approximately 3 times to fresh examples taken from the real world. When I pick up your notebooks, I
will be looking for your attempts to apply theories and analytical diagrams we have worked on in class to
make sense out of what is being reported on. So be on the lookout for opportunities to use every concept
or analytical diagram we develop in class. If you apply the concept or diagram correctly you will get +’s
or ++’s on your notebook entries, you will be prepared for exams, and you will have fresh insights and
discoveries to discuss. Moreover, you will develop the skills to educate yourself about the complex and
ever-changing economy. You will become economically literate.