>>I know that Bolivia had hyperinflation several years ago. ...
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>Supposedly a world record for non-war-related inflation. The exchange rate for US$ 1 changed from 25 pesos to about a million pesos, within 2-3 years.
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>> What are typical inflation rates these days?
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>Within reasonable bounds, but I don't have exact figures. The exchange rate for the US$ changed was 1:2, perhaps, 10 years ago, now it is 1:7.
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>People here are so accustomed to compare the currency with the US$ that they tend to think of the US$ as absolutely stable, which of course it isn't (i.e., if the exchange-rate with the dollar changes from 1:7 to 1:7.7 that is sometimes interpreted as a 10% inflation - completely disregarding the inflation that the US$ suffers).
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Hi Hilmar.
Change of exchage rate is not real indicator of the inflation. In reality inflation mesures comparing how many goods in a special basket you ken buy today and year ago.
Usually exchange rates floating depend on international trade and economic issues. They present how much is strong one economy compared with other at thit moment.
If every year you have more than 10% inflation this frustrate citizents, but there are economies, like Israel one which work perfect with anual inflation 20-40%