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Actually, inflation is caused by the increase in the money supply. While certainly goods derived from high energy usage will become more expensive as the cost o
by ivankirigin 19y ago
Actually, inflation is caused by the increase in the money supply. While certainly goods derived from high energy usage will become more expensive as the cost of energy increases, that isn't the same as inflation.
Measures of the CPI that remove these derivative effects are better. They demonstrate the true responsibility of the fed, much more than a half measure of the cost of petroleum.
- far33d 19y agoFed responsibility matters - but what matters more to the average consumer is the actual dollar price of goods in relation to their incomes.
- ivankirigin 19y agoThe average consumer couldn't tell you why productivity matters. Productivity happens to be the single greatest indicator of long term changes in wealth and standard of living. The lesson learned: don't pay attention to meaningless indicators just because the average consumer thinks they are important.