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Its cost-of-living estimates are based on the prices faced by a "representative household", whose consumption mirrors national spending.
Perhaps their spending has an undue influence on the prices faced by the representative household.The ADB's findings face an obvious philosophical objection.
As a result, the "poor pay more".Such concerns prompted the Asian Development Bank (ADB) to carry out its own study of the prices faced by the poor in 16 of its member countries (not including China).
It replied as follows:"The OECD publishes broadband prices in both USD and PPP terms but uses the PPP data for graphs because they give a better view of the actual prices faced by households relative to local prices for goods and services.
"Initial indications are that broadly offsetting the GST-induced price increases faced by households earning less then $100,000 and half of the increased prices faced by those earning less than $155,000 would use at least half of the extra GST revenue," the document says.
The right panel of Fig. 4 depicts prices faced by different customers.
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Note that equity investors who fear a collapse in share prices face different incentives.
Venezuela's government, reeling from the drop in oil prices, faces difficult parliamentary elections in 2015.
Now, airlines unprotected from higher oil prices face some tough decisions, Mr. Boroch said.
Syria's economy, which has survived largely thanks to high oil prices, faces a double plunge from collapsing crude reserves and world prices.
Stock prices face an equally big risk of a sudden economic slowdown.The Fed's March 25th increase in its key short-term interest rate came as no surprise.
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