He fitted a regression to the data, finding that equal shares of the population considered themselves better and worse off when the measured inflation rate was 1.5 percent, a result suggesting a 1.5 percent measurement bias in the CPI. Nordhaus's method requires that the entire income distribution move at the same rate.
To illustrate this point, I would like to draw on two examples: First, can coordination help moderate volatility in response to specific shocks, especially those emanating from global players? Second, can it prevent the emergence of global imbalances?