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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