The US Government uses the Consumer Price index to measure inflation.
The 'core' CPI excludes food and energy prices.
Is this fair? By excluding gasoline and food from the calulation, is inflation
being underestimated?
What would an economic model based on the CPI lead to? If it underestimates inflation, what will that do to the future economy?
Resources:
Consumer Price Index:
http://en.wikipedia.org/wiki/Consumer_price_index
http://en.wikipedia.org/wiki/Hedonic_regression
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