Links for 2008-08-24

  • Real Time Economics | Fed Paper Backs Use of ‘Core’ Inflation – “Yet some economists argue that it’s harder to dismiss energy and food price gains since they reflect in part global forces that are unlikely to reverse, like the industrialization of China and India. Central banks that target headline inflation like the European Central Bank and Bank of England have maintained much tighter monetary policy than the Fed has in the face of the economic slowdown and financial crisis.”
  • Inflation Delivers a Blow to Vietnam’s Spirits | – “A shoeshine has gone up to 25 cents from 19 cents; a good haircut to $1.87 from $1.25; a tiny cup of tea on the street to 6 cents from 3 cents; a one-time-use raincoat to 37 cents from 12 cents; a massage to $6.25 from $4.37. Also, it now costs 12 cents to park your motorbike on the sidewalk, and if you get a flat tire, it costs 12 cents to get it pumped, double the prices of a few months ago.”

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