Coffee Traders' Forum - A Discussion about Coffee Futures Trading
Coffee Traders Discussion Forum
Your argument against adjusting for inflation is that a spike to $22 is too high? One should adjust both for inflation (dollars back then are not the same as dollars now) and productivity gains (you can look at the average productivity in Brazil back then and compare to what it is now). The thing is, I don't believe there have been many productivity gains for small growers in other countries.
I agree that an unadjusted graph "looks" more correct, but, in economics and finance, looking correct and being correct can be very different.