Consider all of the many ways in which information contributes to the functioning of the economy. Investors need it to assess the quality of the issuers of stocks and bonds. Employers want it to evaluate potential employees.

The Phoenix real estate market began to turn around in 2009, but the improvement was driven by foreclosures and by investors drawn to the resulting low prices, according to the latest ASU Repeat Sales Index (ASU-RSI) report.

Real estate experts are watching for signs that the Phoenix market is returning to normal. Activity slowed a bit in November — a hopeful sign because it is consistent with seasonal norms. But the market is still feverish.

Thirty-seven years ago Roy Vallee was stocking shelves at a small electronics distribution company in Los Angeles. That small firm has grown up to become Avnet, Inc., a Fortune 500 firm located in Phoenix, Arizona.

According to the latest ASU-Repeat Sales Index (ASU-RSI), overall house prices declined by 13 percent in December compared to December 2008, an improvement over the 17 percent year over year decline seen in November and the 20 percent decline in October.

In his classic book on economic history, Charles Kindleberger argued that asset bubbles follow a predictable pattern. A new opportunity or technology sparks investor euphoria. Asset prices quickly rise to an unsustainable level. Then suddenly, people stop buying, and panic ensues.

The world's two economic superpowers — the United States and China — face significant challenges as they confront the future possibilities of trade and a new world economic order.

Achieving environmental sustainability for supply management is a goal which may also help boost firms' overall competitiveness in these fretful economic times.

The Economic Minute is a new feature of Knowledge@W. P. Carey. These brief recaps by W. P. Carey economists, first presented at Economic Club of Phoenix luncheons, are designed to bring you up to date on current conditions nationally and in the West.

Real estate expert and finance Professor Karl Guntermann has been predicting for a long time that the decline in Phoenix area home prices would probably bottom out by the end of 2008.