Page:Stabilizing the dollar, Fisher, 1920.djvu/255

is one of unusual variability of the price level before the war (although of less average variability than the 1% every two months, assumed in the standard hypothetical case).

(b) Calculation of stabilized index numbers. The following table shows the first stages of the calculation:

1900	I Stabilized Index Number[1]	II Influence of Adjustment of Dollar's Weight		III Tendency (Percentage Change of Actual Index Number)
		Two Thirds of the Influence felt in First Following Interval	One Third of the Influence felt in Second Following Interval
Jan. 1	100
During Jan. and Feb.				+1.35
Mar. 1	101.35
During Mar. and Apr.		-.67		-1.33
May 1	099.35
During May and June		+.43	-.33	-1.88
July 1	097.57
During July and Aug.		+.67	+.22	- .64
Sept. 1	097.82
During Sept. and Oct.		+.67	+.33	+ .92
Etc.	099.74

Let us follow the above calculations in detail, taking the index numbers cited from the bulletin of the United States Bureau of Labor Statistics. Changing them by simple proportion so that the price level of January, 1900, when the system is supposed to have been adopted,

1. This column also shows (by subtracting 100) the deviation from par, and the adjustment (except that this is limited to 1% by the brassage).