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July 02, 2009

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WTF? Anyway, what the hell is pi-sub-(t-1)? Besides ==pi, I mean. What the hell class was this, and what was the question?

Pi is shorthand for the inflation rate, and the subscript refers to time periods. (Sometimes you'll also see it used for profits, but in this case it's inflation.)

The student has unified space and time. Like many great discoveries, it seems obvious in retrospect.

Ah! I took it for the familiar mathematical constant and could not figure out what the heck it was doing in an econ exam, or why somebody expected it to vary over time. Duh.

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