Prices inA$US$

FinVolio

Learn · Statistics

Long-run average

The average of every reading in the series' history. A rough guide to what is normal, though economies change and some series never return to their old average.

The long-run average is the simple mean of every published reading. For a series with decades of history it captures several full economic cycles.

Treat it as context, not a target. Structural change can shift where a series settles: interest rates averaged far less in the 2010s than in the 1990s, for example.

Why it matters

Many economic variables are mean-reverting over long periods: very high unemployment eventually falls, very low inflation eventually rises. The average gives a reference point for how far from normal things are.

General information, not advice.