princch30presentation货币增长和通胀.pptVIP

* This graph is not in the textbook, but it helps expose the inflation fallacy. Note: If you change the scale of the CPI axis, you can make it look like the CPI is rising faster or slower than the average worker’s nominal wage. However, you can normalize both series to equal 100 in 1965 and plot them on the same vertical axis, and the result would be remarkably similar to what you see here: the average wage divided by the CPI is virtually the same today as 40 years ago (despite a few ups and downs in the interim, which of course should not be surprising, as the determinants of the real w