The Consumer Price Index is used for measuring inflation. It is also sometimes viewed as the indicator of the effectiveness of the government economic policy. “The President, Congress, and the Federal Reserve Board use trends in the CPI to aid in formulating fiscal and monetary policies.” The CPI is also used as an economic deflator. “The CPI and its components are used to adjust other economic series for price changes and to translate these series into inflation-free dollars. Examples of series adjusted by the CPI include retail sales, hourly and weekly earnings, and components of the national income and product accounts.”
Posted on: Mon, 02 Dec 2013 02:05:41 +0000
Trending Topics
Recently Viewed Topics
© 2015