CPI-U or CPI-E?
Copy of a LinkedIN post, 2020
CPI-U or CPI-E?
What if the cost of living index utilized for calculation of social security benefits changes from CPI-U to CPI-E? Does it affect the benefits from RRM?
In short .... No.
In long.... as we researched we found that the index agreed upon by the borrower and lender is not the key driver.
We suggested the use of CPI-U, supported by its wide acceptance in governmental, retirement, business contracts etc.
The driver is the marked improvements to all stakeholder cash flow, income and balance sheet from starting in REAL(inflation adjusted) and calculating the equivalent number of nominal units (chosen medium of exchange, currency, cryptocurrency)for the matching of pays and receipts in constant purchasing power. Broad global economic benefits are then delivered.