Sometimes I wonder how much economists learn about delays. If event A causes B later, and event B causes A later, it will start to oscillate more or less. That's what causes sound in air, internet breakdowns, obesity, economic slumps and booms etc.
In science, there are many parameters to describe this: transients, steady state, phase (measured in degrees), damping etc. I never see economics described this way.
However, I assume that a lot of people learned about the effects of delays in economy, including what misrepresenting inflation means. From this assumption, I can either conclude that the incorrect inflation numbers are taken care of in other ways, or that there's some kind of scheme going on, where the quick ones are earning a lot of money, and the copycats are losing it, because they're late at the game. A kind of legal pyramid game.
Which one is it? Or are my assumptions wrong? |
