unclej0

2009 Commodity Fund Performance - Part III

If it is not true that inflation is whatever the government says it is, then how are we to define it for investment purposes?

One problem is that inflation is different for different individuals, depending upon how they spend their money. Relative inflation of the dollar can be quantified by comparing it with some basket of other currencies. There are also things like labor cost inflation and commodities inflation. All of these have an element of arbitrariness.

If we could Cheynify (ie, waterboard) some distinguished economists, would a good answer be obtained?