Do Central Bankers Care About Rising House Prices?


Manage episode 300867912 series 2851541
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Why don’t central bankers care about rising asset prices?
For most people their greatest expense is housing. According to the Bureau of Labor Statistics, Americans spend almost 40% of their take home pay on shelter, this might lead you to ask - why aren’t home prices included in measures of inflation? And should they be? Is real inflation much higher than is being reported in the CPI because of asset price inflation?
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