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Results tagged with Search options user 18

Inflation is generalized increase of prices of goods and services in an economy, along with a corresponding fall in the purchasing value of money. The rate of inflation refers to the increase of the price of goods and services over time.

10
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Exchange (in Zimbabwe dollars). Under the assumptions of price arbitrage and purchasing power parity, one can infer Zimbabwe's inflation rate. I haven't carefully attempted to replicate their work, but …
answered May 12 by Kenny LJ
1
vote
Economists believe that higher growth rates tend to also mean higher inflation rates. So in this case what Mr. Green means is that You don't need a GDP growth rate of over 10% to get inflation. (Even GDP growth of 7.5% or 8% will be enough for the return of high inflation.) …
answered Mar 22 '18 by Kenny LJ
2
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Scenario A. Suppose the inflation rate is 2% (per year). I lend you \$100 (for one year) at an interest rate of 5% (per year). Then after accounting for inflation, the real return I get in a year's … . Now suppose instead the inflation rate is 4%. Suppose we're still willing to make the same deal. That is, I still get a 3% return as my reward (for lending you \$100) and you are still willing to pay 3 …
answered Sep 23 '18 by Kenny LJ
2
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Brand new currencies do typically aim to start off at the middle ground you describe. The problem is that over time, you have inflation (or more rarely deflation), so that over time the currency … you might consider 'middle ground'. But by 2009, its successor the Zimbabwean dollar had suffered so much inflation that a loaf of bread did indeed end up costing 10^n Zimbabwean dollars (where n was …
answered Nov 18 '14 by Kenny LJ
5
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is sometimes dubbed an "inflation tax", this is mostly a metaphorical expression, because it isn't really a tax. …
answered Jun 28 '17 by Kenny LJ
4
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0answers
Smith, 6,000 sestertii ≈ £50 "of our present money". The Wealth of Nations was first published in 1776. Using the Bank of England's inflation calculator, £50 in 1776 = £7,519.57 in 2016, or about US …
asked Nov 24 '17 by Kenny LJ
15
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when the user reaches various thresholds. To my knowledge, these prices (1-point cost of each downvote and privilege thresholds) have never changed. And so, there has never been inflation. What has … StackOverflow. Therefore, privilege prices are subject to inflation as sites grow. Each individual SE site is its own individual "economy" that is sealed off from all other SE sites.¹ And so, whether …
answered Apr 15 by Kenny LJ
3
votes
2answers
The Dec 1996 Boskin report (May 1997 AER summary) concluded that the change in the Consumer Price Index (CPI) overstates the change in the cost of living by about 1.1 percentage points per year (t …
asked Jan 22 '17 by Kenny LJ