On using the various price indices to measure prices and finding the changing in living costs!

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It is expensive, but lovely to live. We can make it cheap, and as such the life is not so lovely. These statements indicate that we are engaged with the life, and with buying different things.

A price index is the sum of all prices and quantities in relation to a base year. We get inflation is the price rises from one period to the next, and we get deflation if the price decreases. We have different price indices the world around, and they are named after a person, and accordingly we have Paasche’s price index named after the German economist Paasche, the Laspeyres’s price index named after the German economist Laspeyres, and Fisher’s price index named after the American economist Fisher. These economists have been visible and strong in the national and in the international trade, and they have made a contribution to the world that is important. We are measuring prices and quanities as they are happened for all sales in relation to a base year. We are getting different price indices for different industries, and the prices can be increasing, decreasing or they can be constant, as with all kinds of progress analyzes from time to time, and these analyzes are published in central places in the most known institutions, and these analyzes are done for all people and for all business actors.

So, calculating the different price indices is just mathematics that is done from one time period to the next time period. Things are happen in all economies, for instance production, imports, exports, sales and buying. And there are also other things in the economies like for example interests and wages, and the real economy says what you are left with purchasing power after there have been changes in the wages and in the prices. And this evaluation reveals that there has been increases, decreases or constant price development from time to time.

We should not throw pearls for pigs in different institutions in the societies, but there should be main points to organizations when coming to competence, education and research. But be a bastard in life, and develop the relationships just as you want. Every human being is a person, and there should be things in the lives for many that are written and that are spoken. And put requirements to your environments and be also friendly, but the calls we are making, and what we do from place to place is dependent of you and me and no one else. And let us make the choices alone and together, and love the people that you want, and we can disgust monitoring and control and philosophy of life, since we are just determning the destiny of our lives alone. But love the people, and the people will love us back!

So, why are we having these price indices? Because, it implies costs to live and to do business, and nobody can get away from this reality understanding. But we can be free in life, and just do things in accordance with our thoughts, feelings and imaginations. And the business lives for all people should be in function, and therefore we should not think that the close relationships are telling us what, how and why, and we need the education in the colleges, the universities and the business schools to take care of all suggestions, all the myths and all the uncertainty! But life should be lived in normal ways as many people are living the life, and no definition should be given unless there are reasons for it. We are just people of the earth, and living is just precision, diversity and freedom in one or another variant!


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Sverre Larsen

Kristiansand, Norway


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