Chapter Questions
Since both the CPI and the chained-type price index (deflator) measure inflation, why do we often see a "spike" in one and not the other?
Is one index superior to the other? Which index must one use?
The PPI is another eagerly awaited number. Is it similar to the CPI?
Should central banks strive for zero inflation?
Finally, since measured inflation tends to overstate the actual cost of living in most economies, does this imply that there is some globally standardized index of measuring inflation?