CPI Effect

Better and Better                                                                                              Day 2

      We all know that there is an important macroeconomic variable called CPI,the consumer price index .In fact ,in addition to CPI,we also have many important macro-economic  variables ,such as PPI (production price index ),as well as total retail sales,total social financing and so on .However ,due to this limited attention ,our public attention is entirely placed on CPI.In these years of macroeconomic analysis ,we will find that the directional role of these variables on the economic analysis is much stronger and more sensitive .While the public limited attention lead the CPI’s attention is 2.5 times than PPI ,10 times than other macro variables .This is called CPI Effect .

      我們都知道，有一個重要的宏觀經濟變量，叫CPI，消費價格指數。其實除了CPI以外，還有很多重要的宏觀經濟變量，比如PPI（生產價格指數），還有社會零售總額等，但是，由於有限的注意力，我們大眾把關注度完全放在了CPI上面。這幾年的宏觀經濟分析中，我們發現這些變量對經濟分析的指向作用要強烈和靈敏很多。而我們的有限注意力導致對CPI的關注度是PPI的2.5倍，是其他宏觀變量的10倍。這稱之為CPI效應。

                                                                                                      August 26th,2018

                                                                                                              Bazhou.