Inflation Adjustment

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witling
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Joined: Jul 8 2008
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Inflation Adjustment

When correcting for inflation to display the real change in housing prices, do these charts (following Schiller) use government inflation figures? The most alarming period corresponds with the most understated government inflation figures (compared to Williams' Shadow Government Statistics at shadowstats.com).
Using Williams' inflation estimates, the bubble price increase in real terms might be 70% of that produced using government figures for 2000 - 2008, hence the evidence of an historic bubble would be less dramatic (though evidence of inflation would be more alarming.) Another way of looking at the cost would be price / cost to produce the house, adjusting, in effect, for house price inflation only.
Thanks for an unnervingly cogent series of lectures.

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