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Calculating Inflation (2012)

I get this question every year:
*i would like to know if it is correct to calculate inflation by doing the following: after rosters are frozen then add up all the money frozen, place a bid value on all players to be available to be drafted and then after adding these together subtract from the $3120 that can be spent at the auction, then divide the remainder by bid value of all player available to be drafted. ie. if x= $ frozen and y= $ allocated to available players at auction; inflation is then 3120-(x+y) divided by y"*

I don't even take that many steps. The formula I use to calculate auction inflation is:

**$ Left to Spend/****$ Value of Players Available**
Last year in my American League, $1,315 in salary was frozen on players that I estimated were worth $1,707. This meant that there was $1,805 left to spend on $1,413 left of talent. So...

**$1,805 Left to Spend**/**$1,413 $ Value of Players Available**
equals 27.7% inflation rate.
That's the raw math. As far as theory goes, I've posted a lot of articles over the years with more of the nuance of inflation.
Adjusting for specific conditions in your auction.
Why pushing players to "inflation par" is a bad idea.
Pushing inflation dollars toward the top (inspired by Eugene Freedman).
Separate hitting/pitching inflation.
Projecting your team value using varying inflation rates.
Coping with super high inflation.

## 1 comment:

Thanks Mike. Forwarded it on to Gypsy Soul.

On a different note, can you post your formulas for calculating earnings again? Or does it stay the same from year to year?

Thanks.

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