Thread: A question for economists...
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Unread 13 Sep 2006, 10:59   #53
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Re: A question for economists...
Quote:
Originally Posted by Alessio
The value of money will stay the same undependent of what amount of money their is on the local market (inside the country/people who use the same currency)
Yeah, and this is exactly why I originally posted that inflation is such a grand topic it would deserve pages and pages full of rant that is incomperhensible for most people reading it here. If we discuss further (now that we've reached the inflation and domestic/foreign markets), we'll eventually come down to domestic inflation causing exports to suffer, which causes a change in the external value of the currency (meaning, less people request pounds; refering to the original post on this). This change comes accordingly with the purchasing power parity theories, which means, on the long run between (an indefinitive amount) economies the exchanges rates of the currencies (or the "value of money", as you name it) will find their way into an equilibrium were the differences in the exchange rates counter the differences in the economies' domestic inflations. On the long run.

Also, global inflation directly affects all economies and markets, hence, directly changing the value of money (because it's inflation that affects everyone; all currencies buy equally less of all goods, ceteris paribus; a "standard" example of global inflation would be the oil prices in 1970s).

Whether or not the debate on inflation is out of topic and out of proportion is a question of judgement.



edit.
Could you please try post so that you wouldn't edit the posts 10 minutes after you've posted them? It's very difficult to follow up with posts the content of which changes times after you've posted them.

edit.
I do understand if you've messed with grammar or left something out, or want to add something to the end; but you're really making a habit of it:

Posted: 12 Sep 2006, 23:44
Last edited by Alessio : 12 Sep 2006 at 23:54.

Posted: 13 Sep 2006, 09:34
Last edited by Alessio : 13 Sep 2006 at 10:39.

Posted: 13 Sep 2006, 11:03
Last edited by Alessio : 13 Sep 2006 at 11:30.

Posted: 13 Sep 2006, 12:20
Last edited by Alessio : 13 Sep 2006 at 12:33.

Posted: 13 Sep 2006, 12:44
Last edited by Alessio : 13 Sep 2006 at 12:57.
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