CPI vs GDP Deflator

In this article the Consumer Price Index and GDP deflator will both be covered, leading on from introducing them in the article on Macroeconomics – Theory & Data. The increase in the overall price level is called inflation, therefore, economists use the GDP deflator and CPI to measure Inflation. “The first difference is that GDP … Continue reading CPI vs GDP Deflator

Textbook Industry

It’s not as if profits for the textbook industry were very high for individual authors, as if this were true more firms would enter into the industry, but that is not the case. (Boudreaux & Meiners, 2010) “[Any] student today could point to at least one area in which the price tag is clear and … Continue reading Textbook Industry

Deflation Down Under, RBA Kanagroos Kick For Lower Rates!

“Australia saw deflation for the first time in seven years in the first quarter, as falling petrol, food, and clothing prices drove down the cost of a basket of goods and services.” (Mulligan, 2016) The Reserve Bank of Australia having prolonged deflation through low interest rates to the point of almost zero, market participants are demanding through market … Continue reading Deflation Down Under, RBA Kanagroos Kick For Lower Rates!