Although inflation is much feared for its negative effects on the economy, how to measure it is a matter of considerable debate that has important implications for interest rates, monetary supply, and investment and spending decisions. Underlying many of these issues is the concept of the...

1. Introduction -- 2. A Simple Producer Benef it Measure -- 3. Willingness to Pav Functions and Marginal Cost Functions -- 4. Approximate Benefit Measures -- 5. Problems with the Producer Benefit Measure -- 5.1. Static versus Dynamic Benefit Measures -- 5.2. The Problem of Endogenous Prices for...