Source: Ludwig von Mises Institute
by Patrick Carroll
“One of the most rudimentary topics in mainstream macroeconomics is inflation, and specifically the different methods of ‘measuring’ inflation, such as the Consumer Price Index (CPI) and Producer Price Index (PPI). These concepts are taught in practically every introductory macroeconomics course, and they play a central role in policy discussions about the economy. One noteworthy, but often overlooked, aspect of this topic is that the specific terminology of ‘measuring inflation’ is taken for granted as the way of describing this area of study. … This language has become so commonplace that economists rarely question whether it is appropriate. But Austrian economists have long taken issue with this seemingly innocuous terminological choice, and for good reason.” (07/09/25)