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Cake day: June 15th, 2023

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  • The BoJ measures inflation to help it manage the economy. It’s not a political tool. As an individual, changes in your cost of living are personal to you. You don’t need the central bank or the government to tell you about it.

    Obviously, the BoJ isn’t focused on individuals. It wants to see what’s happening across the whole economy. Through research that is freely available, it has determined that the index provides a more reliable signal when volatile fresh food prices are excluded (because the things that typically cause these prices to change, like the weather, don’t reflect a broad shift in the economy).

    You’re wrong that energy isn’t included. That sentence is referring to a different (“core-core CPI”) index, which is higher at 4% because energy prices have gone down. Japan’s energy problems are as result of the post-Fukushima shift from nuclear, largely a result of public opinion.

    Put simply, CPI isn’t a measure of “cost of living“. It’s a tool for central bank policy.
















  • The Economist ranks it on par with Poland, which is a member of the EU.

    The downgrading of India’s democracy is basically related to the rise of Hindu nationalism, especially under Modi, and the suppression of freedoms of speech and religion. These are serious and concerning issues, to be sure, but like I mentioned, India is a diverse country and the fact that these tensions have been kept in check for so long is the real surprise. Even Sweden is buckling under the pressure of a (relatively) tiny influx of racial/religious diversity.