Comments on: How Tinkering with Inflation Measurements May Have Led to the Current Financial Crisis http://dissidentvoice.org/2009/03/how-tinkering-with-inflation-measurements-may-have-led-to-the-current-financial-crisis/ a radical newsletter in the struggle for peace and social justice Thu, 08 Dec 2011 15:07:30 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: john andrews http://dissidentvoice.org/2009/03/how-tinkering-with-inflation-measurements-may-have-led-to-the-current-financial-crisis/#comment-40561 john andrews Mon, 09 Mar 2009 14:27:34 +0000 http://www.dissidentvoice.org/?p=7110#comment-40561 The 'shopping basket' of goods used to calculate the UK rate of inflation comprises a constantly changing sample from more than 100,000 items. In addition, these items may be 'weighted' according to quite arbitrary factors. So it is perfectly possible to start out with some desired number in mind, 4.7% say, and mix and match the items in your shopping basket together with how they're 'weighted' and arrive at exactly 4.7%. The ‘shopping basket’ of goods used to calculate the UK rate of inflation comprises a constantly changing sample from more than 100,000 items. In addition, these items may be ‘weighted’ according to quite arbitrary factors. So it is perfectly possible to start out with some desired number in mind, 4.7% say, and mix and match the items in your shopping basket together with how they’re ‘weighted’ and arrive at exactly 4.7%.

]]> By: Brian http://dissidentvoice.org/2009/03/how-tinkering-with-inflation-measurements-may-have-led-to-the-current-financial-crisis/#comment-40381 Brian Sat, 07 Mar 2009 02:00:26 +0000 http://www.dissidentvoice.org/?p=7110#comment-40381 Nicely reasoned. I am a teacher and our contract negotiations are always based off of the "official" inflation rate. We've been getting screwed for several decades now. Nicely reasoned.

I am a teacher and our contract negotiations are always based off of the “official” inflation rate. We’ve been getting screwed for several decades now.

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