Sunday, September 09, 2007
Schiller, Inflation and Hedonics
You've all seen "The Graph," done the double take and decided we are totally screwed. In a rare break with the bears let me go into a little of my reasoning why "The Graph" is wrong. There are 4 general adjustments I will make to "The Graph":
• vertical scale 0-200 rather than 60-200
• inflation using the old metric rather than the BLS CPI as adjusted
• date range
Then for something completely different, a look at housing prices as a percentage of monthly income (two ways, regular income and regular + investment income).
For today however The same graph with a true vertical scale:
Depending on chores I may get the shadow inflation graph discussion up this afternoon, or not.