Wednesday, August 13, 2008

What is inflation?

One answer is to look at alternative currencies. Here's an FT article, originally from 1983, on the Mars Bar Index. Any more detailed updates?

Dearieme says "Mars Bars were 99p per pack of five in our Co-op recently. Bargain!" Is this proof of deflation?

2 comments:

AntiCitizenOne said...

I think this is

http://anti-citizen-one.blogspot.com/2008/08/strong-sign-of-deflation.html

Anonymous said...

But I discovered yestreen that the bargain packs have vanished: it's back to top-dollar pricing. That represents an enormous burst of inflation.