Mapping inflation to economic freedom in the post-COVID era
研究了《世界经济自由度报告》中衡量通货膨胀的指标在2021年通胀飙升时几乎未变的问题,探讨了改进方法,但仅取得有限进展。
Abstract The Economic Freedom of the World report measures five dimensions of economic freedom, one of them being Sound Money. Compared to where it had been in decades for most of the West, inflation skyrocketed in 2021. Yet the indicator which measures inflation in the most recent year barely budged due to how it is specified and parameterized. This paper explores potential improvements on the methodology, although ultimately only modest improvements are achieved over simply changing the value of inflation that corresponds to zero (the lowest index score) in the simplest linear specification.