Inflation - videos
Watch the following video clips and reflect upon the questions following each video:
Video 1 (BBC) - the effects of inflation:
- Identify the winners and losers from inflation.
- Explain why consumer price indices are weighted.
Video 2 - changing CPI weightings in China
Video 2 shows a news clip about attempts by the Chinese government to change the consumer price index weighting
- Explain what the government of China has done to the weighting of the consumer price index.
- Identify the effect of this change on the reported level of inflation.
- Analyse the reasons why the Chinese government has made this change.
Video 3 - problems of a CPI in the US
Video 3 is a presentation considering the problems of constructing a consumer price index in USA
- Summarise the main problems associated with calculating a consumer price index.