Re: Fables of the Greenspan

From: Don Galt (DonGalt_at_atlantis.colorado.taggart)
Date: 10/21/04 

Date: Thu, 21 Oct 2004 15:37:30 -0700

Courageous wrote:
>>The CPI has been generally accepted for some time as a reasonable
>>estimate of the 'cost of living.'
>
>
> If anything, economists believe the CPI slightly overstates inflation*,
> due to its lack of mathematical accounting for consumer tendency to
> select substitutes within certain categories of price-varying items
> (example, beef is more expensive, you buy chicken).
>
> C//
>
> *that should probably read "the consumer impact of inflation".

No. Economists NO NOT believe that. Economists recognize that hate CPI
does not measure inflation, because economist know that inflation is
growth in the money supply... not a measure of price changes.

Furthermore, the CPI does not measure chicken or beef-- the CPI measures
"meat" and depending on the prices and the "inflation" figure they want,
the CPI itself switches chicken for beef in the basket.

Relevant Pages

  • Re: Feeling the bite of inflation
    ... around is very very dependent on lying about inflation. ... Economists are in near-universal agreement that the CPI actually ... href="http://www.angelfire.com/rebellion/physiocrat/index-3.html">Champions of Liberty ...
    (sci.econ)
  • Re: Feeling the bite of inflation
    ... >>GDP around is very very dependent on lying about inflation. ... > Economists are in near-universal agreement that the CPI actually ... to exercise their control with a wholesome discretion, ...
    (sci.econ)
  • Re: Fables of the Greenspan
    ... >> economists. ... I would not say economist do not accept the CPI. ... say all prices are rising or falling. ... basket of consumer goods is changing. ...
    (sci.econ)
  • Re: Fables of the Greenspan
    ... >> It's been accepted by politicians of both parties and by most ... >> economists. ... > not accept the CPI. ...
    (sci.econ)
  • OT Government says gas prices have declined since July
    ... Cooking the Inflation Books ... everyone else who pays attention to the CPI statistics that they are ... CPI was measured using the costs of a fixed basket of goods, ... those items dropping in price. ...
    (alt.sports.basketball.nba.la-lakers)