Pages

Tuesday 25 March 2014

Argentinian and Uruguayan Daily CPIs

The Argentinian Daily CPI and the Uruguayan Daily CPI are new additions to the Daily CPI / Daily Monetized Unit of Account links on the right hand side of this blog.

The Daily CPI links now include:

1. Chile

2. Colombia

3. Iceland

4. Serbia

5. Turkey

6. UK

7. Uruguay

8. US

9. US unofficial Daily CPI

10. Other unofficial Daily CPIs

The above official Daily CPIs and all others not yet linked on this blog are used in these countries to value/price their specific government inflation-indexed bonds on a DAILY basis in the global USD 3 trillion (2014) market for these sovereign bonds.

Countries that calculate their Daily CPIs in the form of a Daily Monetized Unit of Account and express them in terms of either 1 or 100 units of local currency at the base date, use these DMUAs also to value/price other items besides their government inflation-indexed bonds in their economies. This is of great advantage in these specific DMUA economies. 

Chile inflation-index a number of monetary items and non-monetary items in their economy on a DAILY basis besides their sovereign inflation-indexed bonds. So much so that they inflation-adjust more than 25% of their money supply on a DAILY basis. There is thus NO EFFECT of inflation in 25% of Chile´s money supply. If they were to increase that to 100% of their money supply they would have NO EFFECT of inflation in 100% if their money supply at whatever rate of low, high or hyperinflation and deflation.

Colombia use their Real Value Unit DMUA to inflation-index all mortgage bonds in the country on a DAILY basis. 

Uruguay use their Unidad Indexada to inflation-adjust some monetary items besides their sovereign inflation-indexed bonds on a DAILY basis.

Nicolaas Smith 

Copyright (c) 2005-2014 Nicolaas J Smith. All rights reserved. No reproduction without permission.

No comments:

Post a Comment