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Politics : Ask Michael Burke

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To: mishedlo who wrote (87038)	12/16/2000 10:35:01 PM
From: Skeeter Bug	Read Replies (2) of 132070

mis, hedonic pricing. eg, as prices rise on a product, its relative "basket" weight is reduced. sound like a joke? it does to me, but it is true. another inflation reducing technique is to disregard anything that is "volatile" (read, goes up). still a third inflation reducing technique is to all but ignore asset inflation. The value of my home is up nearly 50% in 2.5 years. it was up big the year before i bought it. of course, we all know a 24 pack of eggs impacts our lives more than a 50% increase in housing... NOT! i'm sure there are some i've missed.

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