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So you used CPI as your inflation measure? I personally don't think CPI or RPI is a good inflation yardstick, because the calculations change over time. For c
by icu 4y ago
So you used CPI as your inflation measure? I personally don't think CPI or RPI is a good inflation yardstick, because the calculations change over time. For consistency I would suggest you try Shadow Stats or the year on year growth of the M2 money supply.
- imtringued 4y agoShadowstats doesn't know how exponential growth works. The people who believe in shadowstats don't understand it either.
- icu 4y agoI'm not sure I see the link between understanding exponential growth and Shadow Stats? Shadow Stats holds the CPI definition constant over the time period, whereas Uncle Sam jukes the CPI however way he's feeling for "reasons". The reason why I suggested Shadow Stats was that it seems like compumike is trying to show the change in purchasing power over time with https://totalrealreturns.com/ https://totalrealreturns.com/. It's a fantastic idea trying to make the concept of the time value of money, and purchasing power more accessable to the masses. It probably took a lot of work and I appreciate the effort. Imho the correct way to do this is to hold as many variables constant over the timeseries. My point is that since official CPI isn't constant, and imho a bad measure of inflation anyway, using M2 or Shadow Stats woudl be the better way to go.