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To: Investor2 who wrote (5289)1/5/1998 11:03:00 PM
From: PaulM  Read Replies (1) | Respond to of 116927
 
I2, I just posted that for info purposes. Not an expert on the issue, but I tend to see "inflation" as the value of dollars in relation to real assets (i..e, the total amount of money relative to the total amount of real stuff). Various measures of the money supply in general grow faster in realtion to GNP than the CPI does.

I question the justification for looking at a relatively arbitrary basket of goods with arbitrary weighting as opposed to a more genral definition like that above (which should more accuratley measures total buying power with respect to goods, services, stocks, bonds, everything, etc.)

Regards