4 ms·
Inflation is a great example of a statistic that appears to be model-free, but actually has some hidden assumptions behind it. In my country, inflation has bee
by soVeryTired 10y ago
Inflation is a great example of a statistic that appears to be model-free, but actually has some hidden assumptions behind it.
In my country, inflation has been comfortably in the 1-3% range since the '90s. But house prices have risen by about 6-8% per annum over the same period. So as a non-homeowner, the inflation I experience is substantially higher.
- cmdrfred 10y agoI think that's the problem with inflation. We should look at inflation for a given income level. If housing is 50% of a poor persons income and 2% a wealthy persons a 10% increase in housing costs seems to result in a diffrent decrease in spending power for each group. (5 and .2 respectively)