At the end where the economy is best seen is in everyday life. Yesterday I was speaking with my father, when I asked him how much he had paid for the mobile phone that he purchased for Christmas: a new generation phone with mp4, support for watching movies, wifi, etc... For my surprise, the price was the same as he paid one years ago for his old mobile phone, whose benefits were just camera and mp3. In real terms today´s mobile is cheaper than yesterday´s, because for the same price the current phone has more advantages. However, we know that this technological progress is something that CPI ignores.
Although there are so simple arguments like the lack technological progress record on the CPI, it seems that Mr Pedro Solbes has just found absurd and meaningless arguments that the only thing they achieved was to divert attention from a problem that, in my view, should not be taken as a joke.By the way, one effect that is also not reflected on the CPI is the replacement of short-term consumption of an asset by another (because there are fixed weights for each item that are not modified in one year or more). I bring this up because of the latest proposal that the Minister has left for this Christmas to replace the consumption of chicken for the rabbit. It seems that the Minister should check his introduction to the economics notes this holidays.
Although there are so simple arguments like the lack technological progress record on the CPI, it seems that Mr Pedro Solbes has just found absurd and meaningless arguments that the only thing they achieved was to divert attention from a problem that, in my view, should not be taken as a joke.By the way, one effect that is also not reflected on the CPI is the replacement of short-term consumption of an asset by another (because there are fixed weights for each item that are not modified in one year or more). I bring this up because of the latest proposal that the Minister has left for this Christmas to replace the consumption of chicken for the rabbit. It seems that the Minister should check his introduction to the economics notes this holidays.
