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Message
From
16/06/2002 17:02:07
Hilmar Zonneveld
Independent Consultant
Cochabamba, Bolivia
 
General information
Forum:
Politics
Category:
Other
Title:
Miscellaneous
Thread ID:
00668298
Message ID:
00669044
Views:
32
>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.

I know all that - but that is how inflation is sometimes considered here. The US$ is implicitly considered "absolutely stable", which it isn't, of course - due to its own inflation, plus the fact you mention in the next paragraph.

>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.

When I mention the possibility of a hyperinflation for the US$, most people - both US-citizens and others - consider such a thing is absolutely impossible. Of course it is possible - other countries have had hyperinflation in the past.

Hilmar.
Difference in opinions hath cost many millions of lives: for instance, whether flesh be bread, or bread be flesh; whether whistling be a vice or a virtue; whether it be better to kiss a post, or throw it into the fire... (from Gulliver's Travels)
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