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There's a lot of different ways to measure inflation. This is based on their own methodology and white paper (https://truflation.com/methodology/ https://trufla
by arcticbull 4y ago
There's a lot of different ways to measure inflation. This is based on their own methodology and white paper (https://truflation.com/methodology/ https://truflation.com/methodology/) which I have yet to review. It's almost certainly not "something to gain" but instead just different weights, different sources, different approach.
- ghayes 4y agoTheoretically isn’t the 2% target based on the BLS numbers for inflation? Thus, if we wanted to compare, the “Truflation target” might be more like 1% then? It’s weird to change the method but keep the arbitrary target.
- jfengel 4y agoThe 2% target is rather arbitrary, and is independent of the measurement method. Both the target and all of the metrics are trying to capture the intuitive, handwavey notion of "a healthy economy". So they don't put too much stress on that 2% number. If the number were at 1.9% or 2.1%, they'd assume it's all in the margin of error. If it gets below 1% or above 4% for a while, they apply some tools in the direction of 2%, but not trying to overshoot.
- arcticbull 4y agoYeah, something something Philips Curve. [1] [1] https://www.stlouisfed.org/open-vault/2020/january/what-is-phillips-curve-why-flattened https://www.stlouisfed.org/open-vault/2020/january/what-is-p...