That’s what I meant. 

They could switch metrics to avoid the issue but they want the excuse to print more, so I don’t see that happening. They switch metrics when one component is rising too much.

> pushing prices down in one sector must be offset by higher than normal inflation

Can you explain the `must`? Simply because of the target? Because they could also just re-bucket, like "inflation sans food and energy" (lol!)

optimism

It’s actually the other items in the CPI basket that mechanically must have accelerated price increases, if there’s a component with rapidly falling prices.

This is the part people miss, if the fed's chasing a fixed inflation target, any deflation from tech gains just gets papered over with more money printing elsewhere to hit the number, so the "stable prices" story hides where the real inflation ends up: stocks, real estate, whatever's not in the CPI basket. Bitcoin's the one asset that can't get quietly inflated to make the math work

satoshiplanet

From the sixteenth century to today, techno-asset inflation is found where monetary inflation and technological revolution interact to produce virulent asset inflation.

The positive supply shock emanating from the technological revolution bears down on goods and services prices. This expands the scope for monetary inflation by impeding an intensification of its symptoms in goods and services markets.

 about this recently. Especially in a world of inflation targets, technological advances pushing prices down in one sector must be offset by higher than normal inflation, in order to keep average prices steady or increasing.

Politics_And_Law

econ

By Brendan Brown
> From the sixteenth century to today, techno-asset inflation is found where monetary inflation and technological revolution interact to produce virulent asset inflation.

> The positive supply shock emanating from the technological revolution bears down on goods and services prices. This expands the scope for monetary inflation by impeding an intensification of its symptoms in goods and services markets.

I recall making a similar comment to @SimpleStacker about this recently. Especially in a world of inflation targets, technological advances pushing prices down in one sector must be offset by higher than normal inflation, in order to keep average prices steady or increasing.