1
Economics , Sociology & Politics / Re: Why do we have inflation ?
« on: May 19, 2024, 06:05:42 PM »
Money has 3 tasks:
1) means of exchange
2) store of value
3) unit of account
Unit of account
The problem with inflation is that a depreciating currency makes difficult to measure & compare the value of items over time
This is the drama of inflation: People become poor without seeing it.
People see they have more money - their salaries have increased - and are convinced their wealth has increased.
1) means of exchange
2) store of value
3) unit of account
Unit of account
The problem with inflation is that a depreciating currency makes difficult to measure & compare the value of items over time
This is the drama of inflation: People become poor without seeing it.
People see they have more money - their salaries have increased - and are convinced their wealth has increased.