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51 sats \ 2 replies \ @Undisciplined 15 Aug 2023 \ on: 52 years ago, today NIXON SHOCK meta
Some of the work I do involves hedonic adjustments to historical price series (quality adjusted prices).
There's always a discontinuity right around '72/'73 and my colleagues are always at a loss for why the price of this or that behaved weirdly in that year. They rack their brains trying to come up with what happened in the specific industry or with the specific commodity that might explain the price movement.
When I offer the explanation that the entire monetary system changed, they look at me like I have two heads.
It is sad or funny that such an important event goes unnoticed by the vast majority of the population.
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Even more so when it's professional economists who specifically work on historical prices
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