Richmond Fed's Economic Quarterly, Winter 2005

The Federal Reserve Bank of Richmond has published its Economic Quarterly for Winter 2005. The paper "Inflation and changing expenditure shares" measures the contribution of changing expenditure shares to inflation behavior by constructing alternative inflation measures that hold fixed the weights on price changes for different goods.

The role of changing expenditure shares is revealed by the divergence between the behavior of actual inflation and the fixed-weight measures. The broad features of

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