DAILY REPORT, THURSDAY, DECEMBER 26, 1996: Brent R. Moulton, chief, Division of Price and Index Number Research, BLS, is the author of the article "Bias in the Consumer Price Index: What Is the Evidence?" published in "The Journal of Economic Perspectives, a publication of the American Association, Fall 1996 issue, pages 159-177. In his article he lists recent estimates of bias in the U.S. CPI, by such authorities as the Advisory Commission to Study the CPI (1995), Michael Boskin, Congressional Budget Office (1995), Michael R. Darby, W. Erwin Diewert Robert J. Gordon, Alan Greenspan, Zvi Griliches, Dale W. Jorgenson, Jim Klumpner; Lebow, Roberts and Stockton, Ariel Pakes, Shapiro and Wilcox, and Wynne and Sigalla. A lengthy bibliograpby is included. John M. Berry, writing in The Washington Post "Trendlines" column (page C6), discusses how fears about job security may hold down inflation. He points out that the last time the jobless rate sank as low as it is today -- in the late 1980s -- wage increases and inflation accelerated, forcing the Fed to raise interest rates in 1988 and early 1989 to cool off the economy. But today, firms have become more likely to fire workers when hard times hit. Employees' sense of job security has suffered as the share of job-losers among the unemployed goes up and down with the economy's health.
