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

Comment via: google plus, facebook, substack

Recent posts on blogs I like:

Linkpost for July

Effective Altruism

via Thing of Things July 3, 2026

Agentic test processes, LLM benchmarks, and other notes on agentic coding from Galapagos Island

I've been using AI fairly heavily since last November and the whole thing is a funny experience. An agent will do something that, if a human did it, you'd immediately fire them. My reaction, of course, is to act as if this is great and spin up a t…

via Posts on July 3, 2026

Variable fonts aren't universally supported

I make a lot of webpages. I also use Lockdown Mode on iOS and MacOS for a bit of extra security. Sometimes I realize that I forgot to test on Safari and it looks like crap, or I test and don’t notice that there’s been a problem for months (as was the case…

via Home June 27, 2026

more     (via openring)