How Do We Measure Economic Change?

First, read David Brooks’s amusing column on the proliferation of chain boutique hotels:

Then Yglesias’s commentary:

http://www.slate.com/blogs/moneybox/2014/01/07/edamame_economy_and_the_new_goods_problem.html

It’s a great problem to think about.  Changing tastes and innovation in the service sector are making inflation harder to measure.  By reducing the number of goods you can look at, you subject your index to greater statistical fluctuations and dependence on random shocks, such as a bad winter driving up the price of food.

Advertisements
Standard

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s