Free Republic

This week in a press conference, Treasury Secretary Janet Yellen stated that the U.S. economy is doing exceptionally well. "As I mentioned, the United States is doing extremely well economically, with inflation coming down in a strong labor market, and Europe is doing better than was feared at our last meeting." Contrast this to what real Americans think. In a recent IBD/TIPP Poll, over one-half (55%) believe the economy is in a recession, and another 56% (57% in March) think the economy is not improving. We welcome any good news. We always take Yellen's pronouncements with a pinch of salt....

Addressing misconceptions about the Consumer Price Index A number of longstanding myths regarding the Consumer Price Index and its methods of construction continue to circulate; this article attempts to address some of the misconceptions, with an eye toward increasing public understanding of this key economic indicator. The Consumer Price Index (CPI), published by the Bureau of Labor Statistics (BLS), has generated controversy throughout its history. A soon-to-be-published article by Marshall Reinsdorf and Jack Triplett discusses the many past reviews of the methods and data used in the CPI’s construction.1 Beginning with an advisory committee appointed by the American Statistical Association...