Friday, November 16, 2012

What some people have got wrong with price level.

Obviously there is a conspiracy that the central banks and government stat authorities manipulate CPI down and quite a few people believe that. Therefore, it might be better to use the GDP deflator to measure our inflation. the GDP deflator should be better if you do not trust the CPI since it includes all the goods and services domestically produced.

Are you still seeing a run-away inflation? Much milder than the inflation rate measured in the CPI, isn't it? Unless the GDP deflator is manipulated as well...

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