Thoughts, essays, and writings on Liberty. Written by the heirs of Patrick Henry.

March 9, 2009

Dow — Feels Like 1966, Baby!

by Brad Warbiany

Is this a knock on the market, or a knock on the Federal Reserve and the inflationary track we’ve been on since the end of Breton Woods in 1971:

Dow Jones Industrial Average corrected for CPI inflation

I’m going to select “both”.

I’d love to recreate this graph and make the vertical access non-logarithmic. I think that would really show how far inflation has caused the two curves to diverge.

Hat Tip: The Big Picture

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  • Don Lloyd

    Brad,

    “I’d love to recreate this graph and make the vertical access non-logarithmic. I think that would really show how far inflation has caused the two curves to diverge.”

    Since the vertical data has no absolute meaning and the relative significance of one data point versus another is contained in their ratio, the existing logaritmic vertical scale is the most meaningful.

    Regards, Don

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