Why Does Inflation Matter?

January 11th, 2013
inflation, money
If we switched to a new currency, decidollars, where every price was numerically 10x higher but wages were also 10x higher, that would be a bit annoying as we adjusted our expectations, but would it matter? How is this different from inflation? Couldn't I spend my whole life thinking in 2010-dollars, internally adjusting everything for inflation? What do nominal amounts affect?
Referenced in: Adjustible Rate Everything

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