It’s my understanding that CPI measures (not inflation) the price changes associated with a “basket of goods” that consumers typically buy. Maybe this means that TPTB will change what goods are in the basket more regularly? That’s the gist of what I’m getting from this video “explaining it”:
http://yourmoney.blogs.cnn.com/2012/12/17/chained-cpi-explained/?iid=EL
The kicker?
This new measure of “inflation” could ‘result in slower “inflation” over time.’
Sweet! This new measure will, all by itself, help preserve the value of my hard earned money- er.. am I falling into the Inflation Fallacy again? Gotta remember that neutrality of money!
Sigh.. what the hell. Helicopter Ben couldn’t be any happier: Flood the markets with gross sums of money for an indefinite period of time and, when the prices rise, it wi’ll be called “deflation”.