So only gold can measure inflation?
To measure inflation by using a group of prices, that group of prices must measure the selling prices of ALL products in their real ratios
So there is no way to sample less than every single item?
or it is inaccurate with no way to know how inaccurate or in what direction.
Yeah, I never said the measurement was perfect.
Inflation is characterized by product substitution as the prices of things go up in nominal dollars.
I thought inflation was a rise in the general price level?
The various cpi amalgamata do not take this into account nor do they take into account that this substitution ameliorates the rise in the aprices that are rising in the "basket."
Are you sure about that? I've heard Freepers complain that the govt uses substitution as an excuse to minimize CPI increases.
The spikiness in both directions of the proffered chart should have been your first visibly obvious clue that it is not an inflation chart.
It's not so spiky since 1983. I suppose you have a chart that shows the real rate on inflation since 1800? Or is your chart just a gold chart?
The cpi is a handy device used by Keynesians and statist monetarists for obfuscating actual inflation. Its message is that inflation is what the official economists say it is and we're doing fine.
Yeah, I get it, evil monetarists. I'll await your real inflation chart.
Also note that the "basket of goods" used to calculate cpi and official inflation is changed, both in content and in ratio, from time to time to produce results more favorable to government policy.
It's not because of substitution? Or the introduction of new products? You'll be satisfied with nothing less than a measure of 100% of all items purchased? Or just one item, gold?
You never commented on our 155% inflation since 2000. Is that your belief?
It doesn't matter whether I am satisfied with anything. You desire a neat little sampler measurement that you can point to and say "See?" there is inflation! Now all we have to do is tweak this quantity over here and twiddle that rate over there and see? we experts know how to adjust everything. The economy really couldn't work at all if our Harvard Hands weren't on the steering wheel. Okay, now I have used the word "gold" without spitting. Why are you still in the discussion? To you I am speaking Tokharian.