Publication details
Zkreslení inflace a jeho důsledky pro hospodářskou politiku
| Title in English | Inflation Bias and Its Implications for Economic Policy |
|---|---|
| Authors | |
| Year of publication | 2003 |
| Type | Article in Proceedings |
| Conference | MendelNET 2003 - Sborník příspěvků z konference studentů doktorského studia |
| MU Faculty or unit | |
| Citation | |
| Keywords | inflation bias; consumer price index; cost of living index; index numbers; economic policy |
| Description | Inflation bias is meant to be difference between the Consumer Price Index and the theoretic concept of the True Cost of Living Index, i.e. difference between a statistical practice of measuring inflation and the reality how economic subjects understand inflation. There are four sources of bias: substitution bias, outlet bias, quality change and new goods bias. We can estimate the inflationary bias for stable market economics to be more as 1 percentage point per annum. Economic policy, using official data of inflation and with from these data resulted real indicators, can make therefore inadequate decisions with real economic implications. |