Re: Inflation
- From: "ZigZag" <zigzag2000@xxxxxxxxx>
- Date: Thu, 26 Oct 2006 20:34:23 +0200
"Hunter" <coaster132000@xxxxxxxxx> ha scritto nel messaggio
news:1161468903.603234.203110@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Isn't the "decline in the value of the dollar" simply another term for
inflation?
But the former is said to have been great and the latter to be under
control. In other words the inflation raises geezers get annually on
their Social Security is linked to the lesser of two different
measures?
Think this: if the EUR/USD cross passes from 1.25 to 1.50 dollars, the
prices of European goods will increase of 20% in terms of dollars. If US
imports from Europe say, 10% of GDP, the real increase due to the decline of
dollar value is only 2%. Obviously a bit of inflation will take place in
addition to the ordinary internal one, but not so much. Anyway, as somebody
here said in other threads, the dollar already underwent a devaluation of
almost 50% in late 80s-early 90s (in confront with the highs it hit in mid
80s) but that didn't cause a great inflation at the time.
.
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