Comments on: Price Waves http://www.consumerismcommentary.com/price-waves/ A premier personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Mon, 21 May 2012 23:56:34 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Flexo http://www.consumerismcommentary.com/price-waves/comment-page-1/#comment-456 Flexo Thu, 26 May 2005 18:11:44 +0000 http://wp.consumerismcommentary.com/?p=302#comment-456 Interesting, thanks! The article mentioned (<a href="http://www.frbsf.org/econrsrch/wklyltr/el97-11.html" rel="nofollow">linked here for clickable access</a>) describes both sides of the debate around food and energy prices. It's very informative. Interesting, thanks! The article mentioned (linked here for clickable access) describes both sides of the debate around food and energy prices. It’s very informative.

]]> By: Eric http://www.consumerismcommentary.com/price-waves/comment-page-1/#comment-455 Eric Thu, 26 May 2005 17:22:47 +0000 http://wp.consumerismcommentary.com/?p=302#comment-455 Flexo, The fed focuses on "core" inflation because food and energy prices are so volital that they don't offer as much information about short term inflation over the next year as one is inclined to assume. To say however that food and energy prices are ignored is also incorrect. They are considered. The fed does not use core inflation exclusivly. The Federal Reserve Bank of San Francisco has a good summary of how and why different inflation measures are used. <a href="http://www.frbsf.org/econrsrch/wklyltr/el97-11.html" rel="nofollow">http://www.frbsf.org/econrsrch/wklyltr/el97-11.html</a> Flexo,
The fed focuses on “core” inflation because food and energy prices are so volital that they don’t offer as much information about short term inflation over the next year as one is inclined to assume. To say however that food and energy prices are ignored is also incorrect. They are considered. The fed does not use core inflation exclusivly.

The Federal Reserve Bank of San Francisco has a good summary of how and why different inflation measures are used.

http://www.frbsf.org/econrsrch/wklyltr/el97-11.html

]]> By: Flexo http://www.consumerismcommentary.com/price-waves/comment-page-1/#comment-454 Flexo Thu, 26 May 2005 15:51:34 +0000 http://wp.consumerismcommentary.com/?p=302#comment-454 If someone could explain to me why the prices of food and fuel are not included when considering inflation, I'd be thankful. I don't understand why the biggest contributors to increases in the cost of living are ignored in the inflation calculation. I have no background education in this, so any insight would be helpful. If someone could explain to me why the prices of food and fuel are not included when considering inflation, I’d be thankful. I don’t understand why the biggest contributors to increases in the cost of living are ignored in the inflation calculation. I have no background education in this, so any insight would be helpful.

]]> By: dman http://www.consumerismcommentary.com/price-waves/comment-page-1/#comment-453 dman Wed, 25 May 2005 21:11:20 +0000 http://wp.consumerismcommentary.com/?p=302#comment-453 This concept of long term inflation may be somewhat interesting but frankly the concept of modestly rising inflation is already assumed by everyone in the economic system in this country. The idea of long term inflation is not ignore, it is accepted as fact and the short term attempts are to manage its growth. I don't understand the point of this article. The fed is focusing on the wrong inflation? What does that mean? Should they be taking some action to halt long term inflation, or control it? What exactly would that action be. If this concept of long term inflation is secular and not cyclical, and its global and not national, then how could the Fed possibly do anything to affect it in the slightest? Clearly they could not. Yet the concept is postulated that the Fed is focusing on the wrong inflation? That doesn't make any sense. Clearly the want wants to stabalize short term inflation. Does anyone really care about managing the rate of inflation as it is averaged over 180 years? I don't think so. So what is the solution? Ah, the author offers nothing. Just a list of historical events and what happened and then says the outcome is up to us. Wow, that was informative. This concept of long term inflation may be somewhat interesting but frankly the concept of modestly rising inflation is already assumed by everyone in the economic system in this country. The idea of long term inflation is not ignore, it is accepted as fact and the short term attempts are to manage its growth.

I don’t understand the point of this article. The fed is focusing on the wrong inflation? What does that mean? Should they be taking some action to halt long term inflation, or control it? What exactly would that action be. If this concept of long term inflation is secular and not cyclical, and its global and not national, then how could the Fed possibly do anything to affect it in the slightest? Clearly they could not. Yet the concept is postulated that the Fed is focusing on the wrong inflation?

That doesn’t make any sense. Clearly the want wants to stabalize short term inflation. Does anyone really care about managing the rate of inflation as it is averaged over 180 years? I don’t think so.

So what is the solution? Ah, the author offers nothing. Just a list of historical events and what happened and then says the outcome is up to us. Wow, that was informative.

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