>>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.
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>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.
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>>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.
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>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.
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>Hilmar.
You are right that it is possible, but in US are available enough clevel conservative economist, who well know rules for management of economy and keep them. Usually invlation comes from a few reasons:
- stupid behaviour of politics and weak bussines.
- absent of real mesures of economic indicator
- absent of business regulation
- etc.
most of this things couldn't be observed in USA, they very well learn their lesson from Great Deprecion 1930.