Enduring Insights
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The Hedonic Adjustment Also Rises
Michael Ashton – March 9, 2010
Although many people believe that when the BLS hedonically adjusts price indices to reflect changes in quality it systematically dampens recorded inflation, there is at least one significant example of hedonic adjustment being used to increase recorded inflation for a large part of the index.
Cognitive Errors And The CPI
Michael Ashton – February 17, 2010
The Government is not beaming secret messages into our brains, and it isn't manipulating CPI to hold down transfer payments, either. Here are the main reasons people perceive more inflation than there actually is.
Inflation Models Suggest Bottom In 2010Q3
Michael Ashton – January 29, 2010
With the latest data plugged in, our models are calling for core inflation to bottom in late Q3 and accelerate in Q4.
Hayek versus Keynes...In Verse
Michael Ashton – January 28, 2010
We rarely post anything with no additional comment, but this link to a terrific video comparing Keynes' theories to Hayek's is terrific.
Central Bank Dilemma: Choosing The Stable Parameter
Michael Ashton – January 5, 2010
A recent opinion paper out of the St. Louis Fed argues that the Fed ought to "hierarchically" stabilize inflation first and then turn to growth. But the author's argument is incompletely formed, and in fact is probably a better argument for an ad hoc approach, or alternately a laissez faire approach!
Shelter Flatters CPI Print
Michael Ashton – December 16, 2009
The unwind of the housing bubble is masking the underlying trend of percolating inflation.