NeetaT – I guess you don;t remember about 1980 when you could get 8% from your checking account. Problem was the price of things were increasing by more than that.
Everything you buy will become more expensive in nominal dollars. So you’re getting 10% on your CD, but gas prices go to $5. A gallon of milk costs $5.75 and the Toyota Prius you’ve been eyeing costs $43,500. A happy-days are here again meal at McDonalds is $7.85.
The good news is that exporters would be making more in dollar terms.
