Inflation and Price Indices

In microeconomics, prices are the most commonly cited equilibrating variables.  A fundamental question in macroeconomics has been whether prices are equally relevant in achieving equilibrium for economies as a whole.

Methodology

formula

Measurement Issues

picking weights

seasonal adjustment

owner-occupied housing

Who cares?

retired people and other on fixed incomes

holds of fixed-income securities

parties to long-term contracts

[What's so bad about inflation?]

References

Inflation Central, Federal Reserve Bank of Cleveland.  "Track inflation in the United States and across the world and put it all in perspective with our analysis and commentary."

Inflation, Wikipedia.
Inflation, David Ranson, Concise Encyclopedia of Economics.
The Gold Standard, Wikipedia.
Fractional Reserve Banking, Wikipedia.

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