Re: Hiding a Recession
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i haven't read exactly on what hedonic pricing is, but from the context i think it includes some kind of inflation correction for higher productivity, higher quality goods.
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Yes, thats right.
Its use is an excuse to justify any loosening monetary policy by defining the current state as low inflation when true inflation is in fact much higher. The economic numbers are distorted since GDP seems higher and employment levels seem more sustainable among other things. On top of this they get a break on anything indexed to inflation, including TIPS ,when they understate inflation.
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