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Matters Financial |
24 February 2003
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World Bourses Needlessly Fear the Inevitable
The US and its allies are going to war against Iraq, and they will do so sooner rather than later. Investors everywhere are dithering about what to do, businesses are in a "wait-and-see" mood, and there is no reason for it. War is not enough to undermine or pump up an economy anymore. Time to get moving, and the war will come in its own good time. Click here to read more.
CPI: Leaving Out the Inconvenient Facts
Inflation numbers as issued by the US government are supposed to measure price changes in the overall economy so that the Fed can set interest rates appropriately. The Producer Price Index gives a clue to what businesses face, and the Consumer Price Index provides a similar measure of what John Q. Public pays per month. However, the "core" CPI, which excludes energy and food prices, is a silly notion that should simply vanish. Click here to read more.
Beware Seasonal Adjustments
One of the more common phrases in economic statistics is "seasonally adjusted." On the face of it, it appears to make some sense, trying to remove the rhythms of the calendar from the picture of the economy one is trying to create. However, it might be best not to adjust these numbers at all. Click here for our view.