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Inflation used to include house prices until the 1980s where they wanted to quell inflation. An easy way to do it was to change the definition. Now, it include
by readthenotes1 5y ago
Inflation used to include house prices until the 1980s where they wanted to quell inflation. An easy way to do it was to change the definition.
Now, it includes something called owner equivalent rent, to include both rent and owning a house.
The intent is to include a house prices in inflation indirectly.
- readthenotes1 5y agoAs a recent measure, https://calculatedrisk.substack.com/p/measuring-rents https://calculatedrisk.substack.com/p/measuring-rents