raghu wrote:
> US prices were NOT stable before 1929 - unless you exclude asset prices.

I was, since it's standard in macro to use the phrase "prices" or
"inflation" (unvarnished by any qualifications) to refer to "prices"
those of newly-produced goods and services. On the other hand, it's
standard to use qualifications when referring to "asset price
inflation" and the like.  In the GT, if remember correctly, JMK
referred primarily to (unvarnished) prices.

> But
> why should asset prices be excluded from inflation calculations (if
> inflation is to be considered as a metric of a "stable measuring rod")? It
> seems to be this is as important a subject today as it was in Keynes' day.

usually, (unvarnished) prices are used to get some idea of the "cost of living."
-- 
Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own
way and let people talk.) -- Karl, paraphrasing Dante.
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