consumers a paying. So in terms of 30-year home mortgage rate set at 8.5%, only 6.5% of it is what the consumers are actually paying and the rest is accounted for by inflation. Glassman goes further to point out that with inflation so low, wages arent going up all that fast. To be said more specifically, the interest rates are increasing faster than consumers wage increases. This will eventually be felt in the tightening of the American economy. However with stock market fueling the incredible momentum of the economy, the affects of the interest rate hikes have not yet been felt, and the question has risen to whether or not the Feds tactics are actually going to work. However evidence is pointing back to when in 1995 the real interest rate was close to 6.75% and the economy began to apply its breaks. Between that time in now a lot of money has been placed into the economy, and now to slow growth and inflation, the fed is using these high rates to take some of it away.Secrets of the CPIThe article Unveiling the Secrets of the CPI by Kathleen Madicgan Focuses on exploring what exactly the Consumer Price Index is by using some recent examples from the United States economy. It delves into how the rate of inflation relates to the CPI and what tools the government uses to predict inflation. Moreover, it explores what happens when the government incorrectly predicts the rate of inflation.The U.S. government watches the CPI as a way to determine how fast the rate of inflation is growing. The CPI is a good measurement simply because it is an index of all the goods and services used by consumers in households, and is calculated on a monthly basis. The goods and services that are actually looked at come from a survey of the past couple of years. Usually economists look at the core rate of the CPI, which excluded food and energy prices, since they fluctuate so rapidly. The article points out some examples where the corn produced...
