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Historical comparisons between various interest rates and growth rates in the CPI, MCPI, average weekly earnings and total compensation in the employer cost index

Introduction

Forensic economists who calculate damages in personal injury and wrongful death disagree about appropriate discount rates to use for reducing future values to present value and about growth rates that should be used to project increases in wages, fringe benefits, the price level and the medical component of the price level. Those disagreements take two forms. First, there is debate over which interest rates to consider. Some economists advocate use of instruments of very short maturities only, such as the 9 1 day U.S. Treasury bill rate or the six month U.S. Treasury bill rate. Some advocate use of one year or three year notes or 10 year or 30 year U.S. Treasury bonds. Some ...

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