Why don’t central bankers care about rising asset prices?
For most people their greatest expense is housing. According to the Bureau of Labor Statistics, Americans spend almost 40% of their take home pay on shelter, this might lead you to ask – why aren’t home prices included in measures of inflation? And should they be? Is real inflation much higher than is being reported in the CPI because of asset price inflation?
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Timestamps
0:00 Introduction
0:22 What is Inflation
0:44 The CPI
01:14 Economic Stimulus
02:18 Why are Home Prices Not Counted?
03:41 Is Housing Ignored?
06:21 Other Approaches
07:15 Do Central Bankers Monitor Asset Prices
09:00 Is Rental Equivalence Just a way of Reducing Reported Inflation
10:38 Should We Follow New Zealand’s Example?
12:13 Inflation Inequality
13:37 People Are Leaving Cities
14:03 Subscribe
