for questions that relate to inflation. It's practices, reasons, ect...
3
votes
2answers
124 views
“Inflation actually causes people not to spend”… could it be true?
Oasis Jnr claims that if inflation is high, consumers do not spend, because the high prices does not attract them:
...if inflation occurs then prices rise which will affect consumer
spending ...
2
votes
1answer
150 views
What happened to the Google Price Index?
I've seen it before, but I can't find it anymore. I think I remember Google mentioning that it would only be available in graphical form, but not data form, and also that it would only show one year, ...
1
vote
2answers
127 views
Is there a fool-proof way to keep up with inflation? [duplicate]
I know I can keep cash in an interest-based bank account, but that type of investment will not keep up with inflation, it seems.
Would I be right to assume that government/corporate bonds can keep up ...
2
votes
0answers
111 views
Equity prices during currency devaluation — Mexico 1994
If I own a company whose assets are 100 barrels of oil valued at $10,000 in some currency, and the currency's value suddenly drops by a factor of two, I would expect that my company is now suddenly ...
2
votes
2answers
46 views
International bonds, currency differences, and effect of inflation on such bonds?
Country X's national government purchases country Y's government-issued bonds. Would the bonds be issued in country Y's currency?
How does inflation (of either country's currency) factor into this, ...
6
votes
3answers
137 views
How do you do inflation calculations and estimates?
I'm an engineer, not an accountant so I have no idea what formulas to use (or even the proper terms to google for). I've looked around on a couple of google results, but most of the explanations just ...
1
vote
0answers
25 views
Who decides, and how, each year's increase in the Canada Pension Plan's YMPE value?
I know the Canada Pension Plan's Yearly Maximum Pensionable Earnings value (YMPE) is used for the following:
to determine the annual limit for payroll contributions to the Canada Pension Plan for ...
1
vote
1answer
218 views
How to protect liquid assets from risk of hyperinflation
I don't want to freeze my cash in any medium that would require me to look/wait for a buyer, wait for the collective investment fund to cash my shares as they take their allowance of time to cash them ...
1
vote
0answers
22 views
Does a webpage for historical currency exchange rates and inflation data exist?
Say that I'm watching a Swedish movie from the 70s where a bank gets robbed and the robbers get away with 10 million sek. I would then like to know how much would that correspond to in us dollars ...
2
votes
1answer
140 views
Buying Large Amounts of Inflation-Protected Treasuries (TIPS)
We are selling our current property, and will be renting in the short term while looking for a property to purchase. We have some equity in the current property, so will get a payout at closing. To ...
8
votes
2answers
198 views
Should I do my budgeting in dollars?
I'm from India and earn in Indian Rupees. Should I do the math on my finances in USD?
The reason I ask this question is because INR lost value recently - quite a bit. So, for example, would it be ...
3
votes
2answers
365 views
As an investor what are side effects of Quantitative Easing in US and in EU?
If I understood well Quantitative Easing basically means a Central Bank prints out more money of its own currency.
It seems simple to understand that it saves the country banks and the States by ...
6
votes
3answers
288 views
Should we invest some of our savings to protect against inflation?
My wife and I are in our early 30s. Our gross combined income is about $125,000/year, and our rent is ~$2,500/month (we live in San Francisco). We have no debt, and we have about $85k saved up in a ...
2
votes
1answer
70 views
Comparing Treasury Inlation Protected Securities (TIPS) vs Certificates of Deposit
I was wondering what the pros and cons are of choosing one versus the other. There are TIPS that seem to have a better yield than CDs and would therefore make for better places to park savings.
3
votes
4answers
148 views
Economics of buy-to-let (investment) flats
I'm trying to figure out whether it is a good business to buy a flat and rent it out.
These are the numbers I have so far:
Costs
Property: 150,000
Downpayment (30%) : 45,000
Interest ...
2
votes
2answers
266 views
How inflation factors into a loan amortization schedule
I've been looking at a lot of loan amortization schedules for mortgages lately and wonder how they relate to real dollars over time with inflation.
The calculators I've been using have a calculated ...
7
votes
6answers
609 views
Why does money value normally decrease?
When you save money in the bank, you expect interest on your investment. But if you invest, on, say property, gold, or other durable goods, you don't expect your house or gold to multiply. Why? Is it ...
2
votes
1answer
95 views
What can I do to protect my savings from inflation in my national currency (Mexico)?
What can I do to protect my savings from inflation? I'm in Mexico.
0
votes
3answers
144 views
Treasury Bonds, compounding at new interest rates
this is more a question about bonds in general than just Treasuries, but we will use Treasuries for example
Let say you have $10,000,000 and you buy 30-year Treasury bonds currently yielding 3% ...
12
votes
3answers
703 views
Do Banks Cause Inflation? What are other possible causes?
Some people believe that inflation is caused by an increase in the money supply when the banks print more notes engage in fractional reserve lending. Is this correct?
As I understand it, when there ...
11
votes
4answers
286 views
Is physical gold inflation-proof?
I always assumed that physical gold is inflation-proof, but my advisor at my bank claimed it is not — unfortunately without going into details. Now I wonder what he meant.
My assumption was: If I buy ...
1
vote
3answers
111 views
Get historic amount corresponding to a specific amount today
Are there any site out there that can give the equivalent value of a specific amount today.
For instance, $20 today would be the same as $5 dollars twenty years ago.
1
vote
1answer
59 views
References for inflationary vs. deflationary economy comparison?
Does anyone know of approachable books/papers/articles covering the topics of inflationary and deflationary economy comparison? That is: comparing how different the local/global economy might look if ...
6
votes
2answers
146 views
Effect of country default on house prices?
What effect would a sovereign default of a European country (i.e. Italy/Greece) have on house prices of the same country that goes in default?
What does the previous literature says about similar ...
2
votes
2answers
157 views
How can I protect myself from inflation with the HKD?
There is serious inflation here in Hong Kong. I suspect it is caused by QE1 and QE2. I didn't study Economics when I was in school, so I'm not sure I fully understand the situation. Hopefully someone ...
11
votes
7answers
623 views
Is gold really an investment or just a hedge against inflation?
As per the title of this question, is gold something that can really be considered an investment or is it just a useful hedge against inflation?
While I can understand the value in having hedges ...
4
votes
3answers
159 views
How do economists gather retail price data, such as for tracking inflation?
How do economists track the prices of things like milk, produce, furniture and other retail products? Do they have people with clipboards going out to stores and gathering data? Scrape web sites? ...
8
votes
4answers
247 views
What is the best way to invest in gold as a hedge against inflation without having to hold physical gold?
What is the best way to invest in gold as a hedge against inflation without having to hold physical gold? Is it possible for a regular person to just purchase shares in GLD?
3
votes
3answers
3k views
How do I convert an annual inflation rate into a monthly rate?
For the sake of argument, let's say that the annual rate is 12%. What is the corresponding monthly rate and how do I compute that? I'm assuming it's not as simple as 1%, and there is some compound ...
5
votes
1answer
87 views
What effect would a lower U.S. government credit rating have on TIPS?
TIPS = Treasury Inflation Protected Securities.
Inflation could come quickly if the U.S. starts printing money to pay debt. I'm thinking about investing in these to protect my portfolio.
How does ...
5
votes
2answers
959 views
How to translate old price amounts to their modern day equivalents?
I hope this is the right place to ask. :) I'm currently working on what is to be a wiki/encyclopedic website. Some articles contain amounts or prices like construction costs and such, but since these ...
11
votes
3answers
366 views
How fast does the available amount of gold in the world increase due to mining?
How much new gold is injected into the economy of the world due to mining activity as a percentage of the already available gold? In other words, what is the annual increase in the amount of gold that ...
12
votes
4answers
936 views
Pros/cons for buying gold vs. saving money in an interest-based account?
Over the years, I have noticed a certain pattern when it comes to money and gold.
For example, my father bought a house 30 years ago for $20,000, and today that house is worth $200,000. If my father ...
2
votes
1answer
155 views
how does rise of china interest rate affect the inflation?
I heard not long ago that because of inflation rising up in China, the China Bank will rise its interest rate of 0.25%.
I am quite new to the financial world and do not really understand how this is ...
18
votes
5answers
886 views
Prices go up and salary doesn't: where goes delta?
I'm not sure that question is appropriate here, if it is not I will delete it.
Question: I heard that in USA prices are rising, but salaries are not. This looks strange to me. It means that companies ...
10
votes
6answers
230 views
Can you explain the mechanism of money inflation?
Can you explain the mechanism of money inflation in simple words, understandable by non-professional? Where does it come from?
4
votes
2answers
974 views
Are annual inflation rates compounded yearly?
When we say inflation has remained steady at 2 % for the past 5 years, is it 2 % compounded every year annually?
2
votes
2answers
137 views
What is the meaning of 'indexing' something?
From a document about 2011 taxes, I came across this line:
For 2011, the income thresholds, personal amounts, and tax reduction amounts are indexed. They have been increased based on changes in ...
3
votes
4answers
277 views
How can I make money if I believe that interest rates will go up, other than by investing in real-estate or taking out a low-interest loan?
How can I make money on the conviction that interest rates will rise other than:
Buying real-estate
Taking out a cheap loan and lending at a higher rate in the future
3
votes
3answers
360 views
Where can I invest for the Short Term and protect against Inflation?
I am looking to open some short term savings accounts (Emergency fund, Car fund, etc) that I want to have liquidable, but I may not necessarily touch at all from month to month.
I am very worried ...
4
votes
1answer
325 views
Considering inflation, what's the value of Euro today (January, 2011) compared to 2005?
So what would be 1000 Euro from 2005 worth today (January, 2011), considering the inflation?
1
vote
2answers
96 views
Is it possible to estimate individual rate of inflation for a person as against the avg inflation rate for that country?
Even though normally we all use a specified inflation rate per country for financial calculations (i.e real returns, salary increases, etc..) isn't it possible for the inflation rate to have different ...
14
votes
4answers
665 views
Relationship between silver and gold prices historically
Can anyone tell me, or point me to documentation that shows the historic relationship between gold and silver prices? Or, better yet, can anyone point me to a source that shows monthly or weekly gold ...
8
votes
5answers
1k views
Buying gold / silver as a hedge against hyperinflation
I'm becoming more interested in buying gold / silver coins as a hedge against inflation and especially hyperinflation. I know very little about this, and there are thousands of sites on the internet ...
1
vote
1answer
140 views
Effect of home country inflation vs. resident country inflation on immigrant's assets?
Let's assume that there is an immigrant whose resident/host country is US which has low inflation while his home country has high inflation. The immigrant invests in his home country using his ...
8
votes
3answers
350 views
How do you model future income when doing long term planning?
One of the things I do that allows me to really get into investments, budgeting, saving money, is spreadsheeting it all out and forcasting the returns I might reap based on a given set of assumptions. ...
4
votes
2answers
212 views
Why is a Vanguard fund based on U.S. treasury inflation-protected securities (TIPS) returning more than the rate of inflation?
VIPSX says it has returns of >= 5% over 5 years and almost 9% in the last year. It appears to be based on U.S. inflation-protected securities. However, U.S. treasuries are returning near zero, and ...
3
votes
1answer
218 views
Are short-term bond funds subject to the same risk as long-term bond funds?
So much in the news about inflation, and interest appreciation dooming long-term bond funds. Are short-term bond funds affected by the same risk? Does this make investing a portion of your portfolio ...
3
votes
3answers
263 views
Does high inflation help or hurt companies with huge cash reserves?
I've been told that high inflation rates lead to high cost of capital for businesses (in one of the answers here - High Leverage Inflation Hedges for Personal Investors).
My question is:
Consider a ...
4
votes
3answers
365 views
High Leverage Inflation Hedges for Personal Investors
I'm looking for an investment that will appreciate against inflation in the US Dollar. I want to be leveraged 10:1 or more. For the sake of argument, let's say I have only $10,000 to invest, which ...
