Tag: inflation
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The Mars Bar Unit of Account
The fluctuating weight of the Mars Bar is quite a contentious issue here in the UK. Answering a query as to whether economists take this into account (and not just price fluctuations) when calculating inflation using the Retail Prices Index, economist Tim Harford offers some entertaining information regarding the Mars Bar unit of account. The Mars…
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Grade Inflation
With news that Cambridge University is to demand A* grades at A-Level as a prerequisite for entry (a grade that currently doesn’t exist), there is much in the news about ‘grade inflation’. However “grade inflation” is actually the answer; the problem is “grade distortion”: True grade inflation would mean each grade was equally devalued, with…