A look at the U.S. Census Bureau and the Federal Reserve Board indexes of capacity utilization, with an explanation of the indexes' construction, advantages, and shortcomings; conclusion of June 15 issue.

An examination of the usefulness of two measures of capacity utilization in predicting price pressures and future investment: one measure attempts to represent the maximum physical output a plant can produce, and one is based on changes in production costs as output increases; article concludes...

A review of the theoretical and empirical relationship between capacity utilization and inflation, employing a two-equation structural model that does not suffer from simultaneity bias and that appears to be stable over time.