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Of course that direct access to every bank account's balance would very much help the fed do its job. Maybe you remember that there was talk of the fed having it's own cryptocurrency, where it could see everyone's balance and every transaction that was taking place, this would eliminate the huge measurement error in basically all the metrics that we care about. With a cryptocurrency we could compute local inflation rates in real time, and the fed's interest rate could be continuously set to achieve whatever outcome we want. The only teensy weensy little downside is that you let the government have complete access to all balances and transactions that occur.
Not without building out an insanely complex goods tracking system and tying it to every payment system. Specifically, every good sold would need to be tagged with adequate metadata for the BLS to replicate CPI calculations. Instead of
product category: grocery
(as distinguished from "product category: alcohol" necessary to enforce certain rules) you'd need{'type: 'flour', 'quality': 'organic', 'amount_in_oz': 32}
.The only major CPI category this could be used to directly track that I can figure out is medicine, but that's because we don't actually track inflation of medical spending, we just track medical spending and treat all increases as inflation. I.e. if open heart surgery used to cost $100k and people bought 1, but now it costs $80k and people buy 2, that's treated as 60% inflation. That means that actual inflation (cost increase of a fixed basket of goods) in the period of 2000-2020 was significantly lower than CPI reports.
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