For questions that relate to inflation, which is the general increase in the prices of goods and services over a period of time.

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4
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0answers
30 views

Is the Social Security delayed benefit increase in addition to COLA?

I understand that delaying taking social security from full retirement age (67, based on my birth year) until age 70 results in a 24% increase in the monthly benefit, or 8% per year. Is this amount ...
2
votes
1answer
35 views

What is the numerical relationship between an APY and an inflation rate?

I’m thinking of starting a CD ladder. The rates for CDs are expressed as an annual percentage yield (APY), while the inflation rate is expressed as a percentage per year. How do you convert between ...
3
votes
4answers
241 views

Is investing in housing considered an adequate hedge against inflation?

Does the price of a home or apartment generally increase, at least, with the rate of inflation in the United States? Could such a purchase be viewed as effective protection against inflation?
2
votes
1answer
73 views

What is the true cost of a loan counting inflation and interest? [closed]

What's the equation for determining how much, in present/initial dollars, I would spend on a loan given that the loan is P dollars, the interest is r percent, inflation is i percent, and interest is ...
0
votes
1answer
77 views

Effect of inflation on stock market [closed]

What is the effect of inflation on stock market activity? Not the effect of inflation to the returns on a particular stock (some stocks may fare well in case of inflation, other stocks may fare badly ...
1
vote
2answers
113 views

Are there any other investing methods I should look into?

I'm looking into long-term investments. So far, I've looked at stocks, mutual funds, IRAs, and 401Ks. I'm 22 and recently begun my first full time job. I know the basics of these investments, ...
3
votes
2answers
257 views

Effect of Quantitative Easing on Price of Bonds

I don't seem to understand the effects of QE. Fed uses open market to purchase long-term government bonds which pushes up the demand for bonds and drives up the price of bonds. However, this ...
3
votes
2answers
79 views

What price index should I consider when saving?

I was wondering if instead of using some official index, I should calculate my own index, putting in the equation all my expenses and calculate how poorer or wealthier I get over the years. Real ...
2
votes
1answer
402 views

Inflation rates to expect over the next 30 years, 401k planning

I am a recent college grad and now a new hire looking to choose 401k options. I am wondering what the general strategy behind choosing a 401k investment rate is. I have been reading Recent graduate ...
2
votes
1answer
925 views

What effect would currency devaluation have on my investments?

I am curious what effect currency devaluation has on the value of my various investments/assets. For instance, I have retirement savings in mutual funds, growth stocks, and bonds. First, let's ...
6
votes
4answers
558 views

How should one account for inflation when planning retirement savings and withdrawals?

Let's say one had a goal of saving $x, in order to live off of (say) 4-5% interest on the principal. How do you then account for inflation? Do you assume some rate and increase how much you would ...
4
votes
1answer
208 views

What are good investments to use as hedges when the Federal Reserve draws down quantitative easing?

Basically I think it is quite obvious that quantitative easing (QE) will be pulled back eventually and countries will start to tighten their monetary policy. When that happens, what kind of assets ...
3
votes
2answers
625 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 ...
5
votes
1answer
770 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
350 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 ...
5
votes
1answer
246 views

Equity prices during currency devaluation — Mexico 1994 [closed]

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
77 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, ...
7
votes
3answers
306 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 ...
3
votes
1answer
567 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
577 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 ...
5
votes
1answer
117 views

Web sites for historical foreign currency exchange rates and inflation data?

Say that I'm watching a Swedish movie from the 1970s where a bank gets robbed and the robbers get away with 10 million SEK. I might then like to know how much that corresponds to in U.S. dollars ...
2
votes
1answer
157 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
235 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
438 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
344 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 ...
4
votes
1answer
122 views

Comparing Treasury Inflation 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
173 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
422 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
3k 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
103 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
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3answers
261 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
963 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 ...
13
votes
5answers
471 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
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2answers
151 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.
0
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1answer
74 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
164 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
176 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
804 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
240 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
275 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
6k 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
93 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
2k 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
381 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
2k 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
165 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 ...
20
votes
5answers
1k 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
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6answers
256 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?
6
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3answers
2k views

When inflation is mentioned over a period of more than one year, is it typically reported as a compound annual growth rate?

When we say "inflation has remained steady at 2% for the past 5 years", is that typically taken to mean 2% compounded annually for each of those years, or something else?
2
votes
2answers
204 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 ...