analysis macroecomic using CERCA framework from following article

Here are some quotes from The Wall Street Journal from than-expected November retail-sales numbers wasn't April 1997 to August 2001. Try to make sense of them, us- welcome. Economic strength creates inflation fears and ing what you've just learned. (And, if you have time, find sharpens the risk that the Federal Reserve will raise inter- your own quotes.) est rates again." September 1998. Bad news on the economy, leading to April 1997. Good news on the economy, leading to an an decrease in stock prices: increase in stock prices: "Nasdaq stocks plummeted as worries about the "Bullish investors celebrated the release of market- strength of the U.S. economy and the profitability of friendly economic data by stampeding back into stock U.S. corporations prompted widespread selling." and bond markets, pushing the Dow Jones Indus- trial Average to its second-largest point gain ever and August 2001. Bad news on the economy, leading to an putting the blue-chip index within shooting distance of increase in stock prices: a record just weeks after it was reeling." "Investors shrugged off more gloomy economic news, and December 1999. Good news on the economy, leading focused instead on their hope that the worst is now over to a decrease in stock prices: for both the economy and the stock market. The optimism "Good economic news was bad news for stocks and translated into another 2% gain for the Nasdaq Composite worse news for bonds. .. . The announcement of stronger- Index."