CPI/PCE measure the purchasing price per unit of goods/services, not the value of dollar at all. CPI and PCE have different goods unit systems. That's all. CPI-W(wages measurement) is used by Social Security for Cost of Living adjustment.
CPI/PCE measure the purchasing price per unit of goods/services, not the value of dollar at all. CPI and PCE have different goods unit systems. That's all. CPI-W(wages measurement) is used by Social Security for Cost of Living adjustment.
CPI/PCE measure the purchasing price per unit of goods/services, not the value of dollar at all. CPI and PCE have different goods unit systems. That's all. CPI-W(wages measurement) is used by Social Security for Cost of Living adjustment.
What measures the value of the dollar, then? And what is "the value of the dollar" exactly, like the value compared to what?
Value of Currency and 2 kinds of Price of Money :
1. Exchange rates measure Value of Currency. IRP/PPP/IFP are theories of exchange rates.
2. Purchasing Price of Money is inflation(purchasing goods costs)
3. Borrowing Price of Money is interest rates(borrowing money costs)