宏观经济学学习笔记【3】关于CPI的其他几个变量

The differences between GDP deflator and CPI

(1)GDP deflator only gauge the statistics domestically.

This first difference is particularly important when the price of oil transforms.

(2)the change of the basket of the CPI - occationally

the change of the group of goods and services used to GDP deflator - automatically

dollar figures from different times

                                                                                        Price level today

Amount in today's dollars = amount in year T dollars * ----------------------

                                                                                        Price level in year T

indexation - the automatic correction by law or contract of a dollar acount for the effects of inflation

dollar figures from different times

                                                                                        Price level today

Amount in today's dollars = amount in year T dollars * ----------------------

                                                                                        Price level in year T

indexation - the automatic correction by law or contract of a dollar acount for the effects of inflation

nominal interest rate: the interest rate as usually reported without a correction for the effects of inflation

real interest rate: the interest rate corrected for the effects of inflation, in another point, it concerns your purchasing power

     Real interest rate = nominal interest rate - inflation rate

Deflation : REAL>NOMINAL

inflation: NOMINAL>REAL