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Energy is so volatile that it makes little sense to count it in measures of inflation. When oil prices double in a year, is that really because USD became less
by necubi 13y ago
Energy is so volatile that it makes little sense to count it in measures of inflation. When oil prices double in a year, is that really because USD became less valuable?
There are certainly a number of methodologies for calculating inflation, but this idea that inflation is 10+% seems to be something of an Austrian fantasy.
The consensus that moderate inflation is good for the economy is about as uncontroversial as you get in economics, and is generally agreed upon by economists across the political spectrum.
- ekianjo 13y agoThe fact is that oil prices affect significantly your purchasing power across every product you buy. There is no reason why you should remove energy costs since there are a significant cost in most of what we buy. And the price of oil does not double every year, it's been rather stable most of the time. Again, if moderate inflation is that good for the economy, why do they need to tweak the numbers? (rhetorical question, the answer is obvious).