Tag Archives: indexes

House resale price indexes confirm upturn in prices for existing homes, but do not negate combined price declines  – by New Deal democrat We got more price information about the very important housing market this morning. Through September, the median price of home resales as measured by Case Shiller increased 0.9% monthly. For the FHFA Index they rose 0.6%. Both measures are up about 46% since just before the pandemic hit (note: FRED hasn’t...

It appears to be a mistake to refer to the price level when discussing the theoretical properties of an economy; at best, there are a few price levels in play at a given time. If we are referring to the measured level of a price index, such as the Consumer Price Index (CPI) there is no difficulty, however this aggregate price index should not be expected to correspond to any useful theoretical construct. This article explains my logic, and then looks at the practical implications of what...