![]() ![]() (If you want to read up on construction of the USA CPI, you can take a look at this: )īut here’s the more important point. In truth, they are constructed, by fallible humans, and are always subject to controversy. This always surprises students-who think that the CPI numbers are handed down by heaven. To be sure some of this is just about measurement: inflation is measured as growth of some price index so it matters critically what you put into the index, how you measure inflation of the individual components, and what weighting you give to each. The government’s numbers come in around 10% the right wing press claims 25% or so. How high? Well, it depends on how you measure it. So what is the basis of the international attack on Argentina, aside from the fact that its leaders are thumbing their noses at the IMF? Well, Argentina has “high” inflation. ![]() Such is the ecclesiastical orthodoxy we mortals encounter in central banking circles.) (Oh, and as an aside, this IMF official/India Central Banker went on to claim there is no longer any poverty in India, that the caste system is actually a thinly disguised scheme for social advancement-sort of like Aristocratic Polo Clubs for everyone–and that India is the greatest land of opportunity the world has ever known, with all Indians “free to choose” whether to be rich-or poor-according to individual tastes, and thus the globe’s most perfect example of democracy to which all others ought to aspire. ![]()
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