Yes, that's one of the arguments in the book The Fiat Standard by Dr. Saifedean Ammous.
The way they build the CPI index is complex. For instance, when an item is no longer available in the market, they choose a similar replacement unless there are no similar items and so a less comparable item is selected. To take into account quality change, they use the "hedonic quality adjustment method" to remove any price difference attributed to a change in quality by adding or subtracting the estimated value of that change from the price of the old item. It seems very prone to mistakes but I don't see how they can build a better index.
As we have seen with the burrito example, inflation reduces the quality of goods and services over time. A fiat food scandal!
Easy, just replace any expensive real food ingredients with cheap gains and industrial seed oils. The bill in reduced health won't come for 20+ years!
Yes, that's one of the arguments in the book The Fiat Standard by Dr. Saifedean Ammous.
The way they build the CPI index is complex. For instance, when an item is no longer available in the market, they choose a similar replacement unless there are no similar items and so a less comparable item is selected. To take into account quality change, they use the "hedonic quality adjustment method" to remove any price difference attributed to a change in quality by adding or subtracting the estimated value of that change from the price of the old item. It seems very prone to mistakes but I don't see how they can build a better index.
As we have seen with the burrito example, inflation reduces the quality of goods and services over time. A fiat food scandal!