Home › Forums › Financial Markets/Economics › inflation without income inflation
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kewp.
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August 20, 2008 at 5:06 PM #13620August 20, 2008 at 5:37 PM #259130
Eugene
ParticipantSince you could buy 1 item with your savings and now you can only buy 0.5 items, the value of your currency has clearly declined compared with the value of the item.
You should ask yourself why this item now costs more, and whether it translates into higher wages for somebody.
August 20, 2008 at 5:37 PM #259333ParticipantSince you could buy 1 item with your savings and now you can only buy 0.5 items, the value of your currency has clearly declined compared with the value of the item.
You should ask yourself why this item now costs more, and whether it translates into higher wages for somebody.
August 20, 2008 at 5:37 PM #259425ParticipantSince you could buy 1 item with your savings and now you can only buy 0.5 items, the value of your currency has clearly declined compared with the value of the item.
You should ask yourself why this item now costs more, and whether it translates into higher wages for somebody.
August 20, 2008 at 5:37 PM #259382ParticipantSince you could buy 1 item with your savings and now you can only buy 0.5 items, the value of your currency has clearly declined compared with the value of the item.
You should ask yourself why this item now costs more, and whether it translates into higher wages for somebody.
August 20, 2008 at 5:37 PM #259321ParticipantSince you could buy 1 item with your savings and now you can only buy 0.5 items, the value of your currency has clearly declined compared with the value of the item.
You should ask yourself why this item now costs more, and whether it translates into higher wages for somebody.
August 20, 2008 at 6:25 PM #259135vagabondo
ParticipantI’ve understood inflation to be a product of money supply. In a given economy, if the money supply increases, yet your income remains unchanged, both your buying and saving power decrease.
August 20, 2008 at 6:25 PM #259338ParticipantI’ve understood inflation to be a product of money supply. In a given economy, if the money supply increases, yet your income remains unchanged, both your buying and saving power decrease.
August 20, 2008 at 6:25 PM #259430ParticipantI’ve understood inflation to be a product of money supply. In a given economy, if the money supply increases, yet your income remains unchanged, both your buying and saving power decrease.
August 20, 2008 at 6:25 PM #259326ParticipantI’ve understood inflation to be a product of money supply. In a given economy, if the money supply increases, yet your income remains unchanged, both your buying and saving power decrease.
August 20, 2008 at 6:25 PM #259387ParticipantI’ve understood inflation to be a product of money supply. In a given economy, if the money supply increases, yet your income remains unchanged, both your buying and saving power decrease.
August 20, 2008 at 6:36 PM #259343kev374
Participantyes, I understand the traditional relationships – that the buying power is decreased.
However, I wanted to determine the value of the currency as how much effort it would take to obtain that money…which is how that $1000 is view as in the effort to obtain it.
I am trying to see if the money would have the same perception of value by people… in the context of how hard it is to obtain it.
If it took you 8 hrs of sweat to obtain $10 today and 5 years from now it is the same then how would you value $10? Regardless of how much things cost.
Yes, if we earned more and things cost more then something of a fixed value, that $10 would be less significant. But what if income was constant.
August 20, 2008 at 6:36 PM #259331Participantyes, I understand the traditional relationships – that the buying power is decreased.
However, I wanted to determine the value of the currency as how much effort it would take to obtain that money…which is how that $1000 is view as in the effort to obtain it.
I am trying to see if the money would have the same perception of value by people… in the context of how hard it is to obtain it.
If it took you 8 hrs of sweat to obtain $10 today and 5 years from now it is the same then how would you value $10? Regardless of how much things cost.
Yes, if we earned more and things cost more then something of a fixed value, that $10 would be less significant. But what if income was constant.
August 20, 2008 at 6:36 PM #259392Participantyes, I understand the traditional relationships – that the buying power is decreased.
However, I wanted to determine the value of the currency as how much effort it would take to obtain that money…which is how that $1000 is view as in the effort to obtain it.
I am trying to see if the money would have the same perception of value by people… in the context of how hard it is to obtain it.
If it took you 8 hrs of sweat to obtain $10 today and 5 years from now it is the same then how would you value $10? Regardless of how much things cost.
Yes, if we earned more and things cost more then something of a fixed value, that $10 would be less significant. But what if income was constant.
August 20, 2008 at 6:36 PM #259435Participantyes, I understand the traditional relationships – that the buying power is decreased.
However, I wanted to determine the value of the currency as how much effort it would take to obtain that money…which is how that $1000 is view as in the effort to obtain it.
I am trying to see if the money would have the same perception of value by people… in the context of how hard it is to obtain it.
If it took you 8 hrs of sweat to obtain $10 today and 5 years from now it is the same then how would you value $10? Regardless of how much things cost.
Yes, if we earned more and things cost more then something of a fixed value, that $10 would be less significant. But what if income was constant.
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