Stripe's Internal Inflation Indicator: A New and Improved CPI?
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Episode Description
Full episode: https://youtu.be/OxP55dZjqZs
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Brief Summary
Stripe executives discuss inflation data and economic indicators' reliability.
Key points
- The Challenge of Economic Data. Understanding inflationary data is complicated by unreliable revisions and varying economic sectors.
- Stripe's Unique Perspective. Stripe's growth doesn't fully represent the economy, highlighting the need for caution in interpretations.
Transcript
we did look at inflationary data over the last couple years and I think you can construct and the team did construct a pretty reliable kind of leading indicator for inflation one of the big things that we've talked about is how many backward revisions there are to everything from non-farm payrolls to GDP that they've become so unreliable and so it's very difficult for people that are transacting in Market to know what to do have you guys ever thought about that because I'm sure that you have a much more accurate sense of where the economy is than many other people we have and I feel a bit ruthful you know with you asking the question because I feel like
on some level we should have done it stripe is not like a full cross-section of the economy you know we're more biased towards online we're more biased towards Innovative companies there can be these stories where I mean during Co the online economy was doing great H the offline economy was sort of a different story so the interpretation can be a bit tricky but then just the second thing is the strip business is growing so quickly and changing so fast that again you know it's not necessarily representative of of the economy and even if stripe is way up year-over year you know you you have
to be a bit hant in drawing conclusions from that having said that I think in principle you could draw some conclusions and so we would like to share that openly because you know I think it's I think it's a public good for there to be better and more reliable economic data
