How Do We Measure Economic Change?

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

Then Yglesias’s commentary:

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.


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