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Some economists say inflation is over-estimated. Just a summary ( https://www.economicsdiscussion.net/inflation/top-3-reasons-for-overestimation-of-true-inflat
by throwaway12245 4y ago
Some economists say inflation is over-estimated.
Just a summary ( https://www.economicsdiscussion.net/inflation/top-3-reasons-for-overestimation-of-true-inflation-by-cpi/15334 https://www.economicsdiscussion.net/inflation/top-3-reasons-... )
"[...] top three reasons for overestimation of True Inflation by CPI. The reasons are: 1. Quality adjustment bias 2. Substitution bias 3. Introduction of new products."
- TedShiller 4y agoThe White House economists are certainly saying that
- roflyear 4y agoLikely they are correct.
- TedShiller 4y agosimilar to when they said it’s transitory?
- roflyear 4y agoBeing wrong once doesn't mean you'll be wrong again. Also IDK if those same people said that.
- TedShiller 4y ago> Being wrong once doesn't mean you'll be wrong again it certainly doesn’t instill confidence
- iso1631 4y agoNobody's personal inflation will match anyone elses - if you drive 500 miles a week your inflation will be fair higher than if you ride a bike a couple of weeks. "Substitution Bias" will change your personal basket and your weights, but it's reflection of real inflation. The problem isn't CPI being too high. Or too low. It's that people don't understand what it's saying, or they argue with the weight of the baskets. (EDIT: And of course even the inflation in a very specific good - like 1 pound of uncoocked prime grade beef, will itself vary depending on geographic location, doesn't mean the average is right or wrong, when they tried to find the average person in the US military they couldn't find him - not a single person met the average once you factored in just half a dozen measurements. It doesn't mean averages are meaningless though)
- newaccount2021 4y ago