Exact(15)
But this will not be the kind of inflation experienced in the 1970's and 1980's.
"Why shouldn't we?" The spike in inflation experienced by Iranians in recent months has compounded the already high price of such surgery.
Upon the establishment of the Bundesbank, its preeminent characteristic was its independence from government control, instituted to prevent a recurrence of the severe inflation experienced in 1922 23, when the government resorted to the printing press for finance.
The "chained Consumer Price Index" that the White House proposes to use is, after all, a more accurate measure of the inflation experienced by American families than the index used today, taking into account that consumers respond to the rise in the price of one good by shifting to cheaper alternatives.
Now, replace the 2.5 percent rise in owners' equivalent rent with 2004's 16.2 percent rise in house prices nationwide, and the actual living cost inflation experienced by Americans comes to a theoretical 7.4 percent, suggesting that deflation was the last thing the Fed should have been worrying about.
Today's Social Security COLA understates inflation experienced by the elderly and people with disabilities.
Similar(45)
Switching to an inflation measure that undermeasures the inflation actually experienced by beneficiaries is a benefit cut that compounds over time, increasing as beneficiaries grow older and exhaust other resources: the more they need full inflation protection, the less they get.
Hence it's probably OK to have moderately above target inflation for a limited period of time as simply the flipside of the recent inflation experience.
As I read it, price and wage setting — as opposed to bond market behavior — are mainly backward-looking, responding to inflation experience rather than attempts to read the central bank's mind.
Germany thinks any inflation is too much, based on their 1920s inflation experience when burning money for fuel was cheaper than burning wood.
A sub-index showing that inflation as experienced by those on modest wages is running well above general inflation will worry the government.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com