Day By Day

Sunday, May 28, 2006

It All Depends On What You Buy

Tim Harford has an excellent short piece in Slate on the problems of calculating inflation rates. Calculating inflation rates is meaningful only if we ask what, precisely, is being bought. When we look closely at the problem we note that much commonly held economic wisdom simply does not fit the historical record.

Read it here. And, follow his links to read some very interesting papers.

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