money value between 2002 and 2008

[DWCAP]

Ok, so I have a question. I thought I would try to understand this change in the way we calculate headline inflation. I understand that it was changed in the 90’s and has consistantly reported a lower level of inflation than the older model did. My question is why. Not conspiricy theory or “cause the gov is trying to inflate its way outa the debt”. They had to have better, more financially sound reasons than that, or no one would still be buying securities. So my question is what are these reasons for change? Is this a better gage of real inflation, more timely, less prone to wide swings…….? I understand core inflation, I understand wage inflation. I dont need definitions or anything like that. I took Econ 101. What I am wondering is more of the WHY.

[alarmclock]

kev374 — IT in 2000 was a bubble, so wage stagnation in IT is probably does not support the argument very well. Although my rates are basically unchanged from 2000 as well.

[alarmclock]

kev374 — IT in 2000 was a bubble, so wage stagnation in IT is probably does not support the argument very well. Although my rates are basically unchanged from 2000 as well.

[alarmclock]

kev374 — IT in 2000 was a bubble, so wage stagnation in IT is probably does not support the argument very well. Although my rates are basically unchanged from 2000 as well.

[alarmclock]

kev374 — IT in 2000 was a bubble, so wage stagnation in IT is probably does not support the argument very well. Although my rates are basically unchanged from 2000 as well.

[alarmclock]

kev374 — IT in 2000 was a bubble, so wage stagnation in IT is probably does not support the argument very well. Although my rates are basically unchanged from 2000 as well.

[Fearful]

DWCAP are you asking about “core” inflation, which excludes volatile food and energy prices? If so, the rationale for excluding those items was to provide a more reasonable measure of inflation, or the comparison of the money supply to economic productivity. But when food and energy prices consistently move in one direction, they cannot be ignored forever.

[Fearful]

DWCAP are you asking about “core” inflation, which excludes volatile food and energy prices? If so, the rationale for excluding those items was to provide a more reasonable measure of inflation, or the comparison of the money supply to economic productivity. But when food and energy prices consistently move in one direction, they cannot be ignored forever.

[Fearful]

DWCAP are you asking about “core” inflation, which excludes volatile food and energy prices? If so, the rationale for excluding those items was to provide a more reasonable measure of inflation, or the comparison of the money supply to economic productivity. But when food and energy prices consistently move in one direction, they cannot be ignored forever.

[Fearful]

DWCAP are you asking about “core” inflation, which excludes volatile food and energy prices? If so, the rationale for excluding those items was to provide a more reasonable measure of inflation, or the comparison of the money supply to economic productivity. But when food and energy prices consistently move in one direction, they cannot be ignored forever.

[Fearful]

DWCAP are you asking about “core” inflation, which excludes volatile food and energy prices? If so, the rationale for excluding those items was to provide a more reasonable measure of inflation, or the comparison of the money supply to economic productivity. But when food and energy prices consistently move in one direction, they cannot be ignored forever.

[DWCAP]

Fearful,

No I know core inflation. I understand that. Basically I am asking why they made the change. Look at some point someone had to be sitting at their desk, or bored sitting in traffic, or sitting where ever they get their thinking done best and that person had to think, “hey, we can track inflation better than we have been.” So they put on their thinking caps, make some changes and present it to whomever makes the decision to make the change to the new system. (stupid short hand for how changes are made i know, but you get the idea).
Ok, in the meeting when they present this new idea, they had to give a REASON or two for the change. What I want to know is what are the reasons cited to make the change in the way we calculate inflation. Everyone on this board always grips about how inflation is understated and all that. But their has to be some benifits of this other than hiding unwanted inflation. What are those benifits?

[DWCAP]

Fearful,

No I know core inflation. I understand that. Basically I am asking why they made the change. Look at some point someone had to be sitting at their desk, or bored sitting in traffic, or sitting where ever they get their thinking done best and that person had to think, “hey, we can track inflation better than we have been.” So they put on their thinking caps, make some changes and present it to whomever makes the decision to make the change to the new system. (stupid short hand for how changes are made i know, but you get the idea).
Ok, in the meeting when they present this new idea, they had to give a REASON or two for the change. What I want to know is what are the reasons cited to make the change in the way we calculate inflation. Everyone on this board always grips about how inflation is understated and all that. But their has to be some benifits of this other than hiding unwanted inflation. What are those benifits?

[DWCAP]

Fearful,

No I know core inflation. I understand that. Basically I am asking why they made the change. Look at some point someone had to be sitting at their desk, or bored sitting in traffic, or sitting where ever they get their thinking done best and that person had to think, “hey, we can track inflation better than we have been.” So they put on their thinking caps, make some changes and present it to whomever makes the decision to make the change to the new system. (stupid short hand for how changes are made i know, but you get the idea).
Ok, in the meeting when they present this new idea, they had to give a REASON or two for the change. What I want to know is what are the reasons cited to make the change in the way we calculate inflation. Everyone on this board always grips about how inflation is understated and all that. But their has to be some benifits of this other than hiding unwanted inflation. What are those benifits?

[DWCAP]

Fearful,

No I know core inflation. I understand that. Basically I am asking why they made the change. Look at some point someone had to be sitting at their desk, or bored sitting in traffic, or sitting where ever they get their thinking done best and that person had to think, “hey, we can track inflation better than we have been.” So they put on their thinking caps, make some changes and present it to whomever makes the decision to make the change to the new system. (stupid short hand for how changes are made i know, but you get the idea).
Ok, in the meeting when they present this new idea, they had to give a REASON or two for the change. What I want to know is what are the reasons cited to make the change in the way we calculate inflation. Everyone on this board always grips about how inflation is understated and all that. But their has to be some benifits of this other than hiding unwanted inflation. What are those benifits?

[Author]

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