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At least US bonds being priced in USD does reflect the risk and demand associated with them. What I wonder is, how is inflation being calculated in terms of th
by zkhalique 11y ago
At least US bonds being priced in USD does reflect the risk and demand associated with them.
What I wonder is, how is inflation being calculated in terms of the CPI, which is essentially prices in dollars? After all, what exactly is being measured by this? If dollars the very currency which is being printed, how does measuring prices account for how much M0 money there is?
- forgetsusername 11y ago>After all, what exactly is being measured by this? Purchasing power of Americans. >how does measuring prices account for how much M0 money there is? Why does it need to? On its own, the amount of M0 is irrelevant. We care about how the effects of supply manifest in prices.