Formerly About Advanced Micro Devices Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Joe NYC who wrote (112523)	5/25/2000 10:04:00 AM
From: pgerassi	Read Replies (1) of 1570652

Dear Jozef and Tgptndr: OT CPI over estimates inflation because it does not take into account buying habit changes over time. As certain items in the "Basket" become too high or cheaper alternatives become available, the basket should change to reflect this. This is normal over the greater than 10 year timescales. If the old freon was in the basket, paying 10 times more because it is being phased out would skew the CPI much to the high side. This happens for many of those things in the current basket. Thus, the current CPI is greater than it should be. Many economists estimate that it overstates by as much as 10-20%. The "Real" CPI is probably half of the printed CPI. The US probably has a "Real" CPI of between 0.5% to 1.5%. I believe that in Europe, their CPI does not include their "VAT", value added tax (national sales tax), thus their CPI actually understates their "Real" CPI. Pete

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next