SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: westpacific who wrote (94185)5/13/2008 11:22:58 AM
From: dybdahl  Read Replies (2) of 110194
 
I'd like to see documentation that Europe is printing money in order to solve problems.

You can argue, that the price of labor has risen a lot during the last 20 years, but the price of many commodities has definitely fallen a lot. I still remember the price of furniture in the late 1980s, the price of basic grocery products etc., and adjusted with the 2% inflation tax that Europeans consider fair, many things are just dirt cheap today.

However, inflation measurement seems to become increasingly complex. If you can buy two equal products, but one of them is more expensive because it was produced in a certain way, and consumption shifts from the cheap product to the expensive product, does that mean that prices have gone up? What kind of inflation do we want to keep at 2% - being able to buy 2% less of exactly the same product each year? What about PCs, should we compare the price of a 3GHz Windows Vista machine today with a 33MHz 486 Windows 95 machine of 1995? What happens when expensive Harry Potter books are launched? Norway's national CPI took a jump last time it happened because these books are more expensive than the average book in Norway.

Maybe we should have a more serious look at the Big Mac index.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News