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Peter Keller at 17:53 Aug 1, 2010

I love how the price of the stamp goes up when there is a discontinuity in the inflation of the US dollar. Maybe could you make that more prominent? Also maybe you could talk about what happens when the discontinuity arises, like what that means in the economy?

Alan De Smet at 19:48 Aug 1, 2010

I'm not sure what you're seeing. Inflation is reasonably smooth. The spikes you're seeing are entirely the result of the stamp price changes. For comparison, look at the inflation chart (the blue line). The log chart may also be enlightening.

Peter Keller at 19:13 Aug 15, 2010

What's the short vertical slopes on the "In 2010 dollars" line?

Alan De Smet at 21:54 Aug 15, 2010

You mean the price increases?

On the right side the inflation adjusted jumps are about the same size as non-adjusted jumps because, say, 2000 dollars are pretty close to 2010 dollars. As we go further back the dollars are worth more, so the spikes are larger; a $0.01 price increase in 1960 is quite a lot, in 2010 it's pretty small.

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