Chessmetrics
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Chessmetrics is a very popular system for rating chess players devised by Jeff Sonas. Contrary to the Elo rating system, it does not suffer from rating inflation and is intended to allow to compare the ratings of players from different eras.
The details on the formulas can be found in the Chessmetrics formulas page.
One caveat is that a Chessmetrics rating takes into account the frequency of play. While it may be in the best interest of the fans for chess-players to remain active, it is not clear why a person's rating, which reflects his/her skill at chess, should drop if the player is inactive for a period of time.