Friday, December 21, 2007

Twelve Days of Christmas and Inflation

For a graph detailing inflation-indexed presents bought in the Twelve Days of Christmas, go here. The author cites an increase in the minimum wage as cost-push inflation and core prices. I think the index needs to be weighted to reflect the actual impact of minimum-wage workers. According to Harvard Great, N. Gregory Mankiw, there are approximately 500,000 workers in this category--a relatively small amount of workers. Perhaps this index points out the how data is reported is the main point.

No comments:

Post a Comment