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Probably to reduce volatility in the measurement and because their main policy tool of interest rate hikes takes a while to take effect.
by MattGaiser 4y ago
Probably to reduce volatility in the measurement and because their main policy tool of interest rate hikes takes a while to take effect.
- seydor 4y agoi would expect them to have a model better than moving average
- imtringued 4y agoThey have the CPI. They can calculate whatever they need from that.
- QuarterReptile 4y agoWhat are the assumptions of the model? Who would make the model? Who would trust the model? How long until the unchanging underlying assumptions blow up under the added pressure of fiscal policy for the most important currency in the world leaning on them? Inflation is one of the most important metrics for healthy governance, right up there with 'what wars are we fighting?' You really don't want it to be any more game-able than it has to be.