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Two important traditional prices’ indices for the measurement of inflation and cost-of-living in Romania, during the last century

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Author(s): Gheorghe SAVOIU

Journal: Scientific Bulletin : Economic Sciences
ISSN 1583-1809

Volume: 8;
Issue: 1;
Start page: 145;
Date: 2009;
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Keywords: statistical index | interpret index | cost-of-living index (CLI) | consumer price index (PCI) | harmonized consumer price index (HPCI) | Schumpeterian index | centennial index

ABSTRACT
This paper details the two original constructions of price indices made by theauthor in the last ten years. These constructions are a proposal of centennial price index andan over eighty years old Romanian cost-of-living index. First part of the paper describes thecentennial index for measuring inflation in Romania, proposed by author in 2007, ininternational conference to “I.G. Zane” Romanian Academic Institute, from Jassy. Theexperience and the constructions of price indices realized after 1913 in the Romanianeconomy are capable of ensuring deflation or inflation movements for several economic andhistorical values, all over the subsequent existence in Romania, if, to that effect, the maininstruments that we consider are correctly sequenced. We deal with three constructions thatexemplarily define the quality and the tradition of Romanian statistics. The first belongs to aneffort foreign to the national statistical effort, and is known as the index according to Argus,being a product of the early economic thought, and the first interpret index, published in“Anuarul pentru toti” (Everyone’s Yearbook), appeared at the “Cultura Poporului” PrintingHouse in Bucharest, during the years after 1918, up to 1926. The second one is the interpretindex of the ICV type, conducted by the Central Statistics Institute, from 1929 till 1938, andthe third one is the interpret index of the IPC type, conducted after the year 1990 by theNational Board of Statistics. In-between, the constructions derived from the ratio of theindexes of nominal and real wages allow the correct sequencing of such a Schumpeterianconstruction of a historical, and mainly economic, value hard to estimate at present. Theapproach substantiated in this logically necessary sequencing is finalized through an originalconstruction of a Romanian centennial price index The second part of the paper describes theconstruction of cost-of-living index (ICV type, published in the Romanian Statistical Review,in 2007, too). In this original cost-of-living index too, after 1929, in Romania, the author hasused the two same indices that exemplarily define the quality and the tradition of Romanianstatistics (the cost-of-living index, from 1929 till 1938, and the interpret index of the PCItype, after the year 1990). This second index contributes, as illustrated in the context, todiminishing the risk of re-evaluations and uncertainties of the comparisons of a social andeconomic nature. The final approach is finalized through an original construction of an overeighty years old Romanian cost-of-living index. A last final remark underlines the necessityof the statistical traditional instruments in our country too.
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