Beyond the Numbers: What Do Prices Tell?

While I was reviewing the classic work of George Stigler on the evolution of distribution theory which has been a landmark in the history of economic thought, I was motivated to write sort of a sequel to my previous article which focused on Consumer Price Index (CPI). Thus, the centerpiece of this issue is a relevant topic that has something to do with price: the Producer Price Index (PPI). In his article titled "Some Recent Developments In The Theory Of Production", Robert M. Solow of the Massachusetts Institute Of Technology stressed that "mainstream economic theory assumes that firms seek to maximize profits. Production theory, then, asks what combination of inputs (known as factors of production) will generate the quantity of output that yields maximum profit." On the other hand, we...

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A Two-digit inflation rate registered in Camiguin

A FREQUENT QUESTION raised by consumers is “how much would a specified amount of money at a certain period of time be worth today?" If you would be looking at price increases on the same basket of goods, even for just a short period of time, do you take it as enough warning of a coming periods of inflation?                Indeed, consumers and investors consider inflation as an economic phenomenon that has an increasing change in the price of goods and services. Price inflation is typically measured using the Consumer Price Index (CPI .which takes into consideration a constant basket of goods.                It is the National Statistics Office that...

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