#Inflation measurement from zero overlooks the deflationary effects of technological advancements. Technologies constantly improve efficiency, reducing production costs and prices, effectively causing a natural deflationary trend.
By measuring inflation from this implied #deflationRate, we gain a more accurate understanding of price stability. Failing to account for technological advancements skews economic policy decisions and may lead to unnecessary interventions.
Recognizing the deflationary impact of technology allows for more informed monetary policy and fosters a clearer perspective on long-term economic trends.