New answers tagged inflation
The Excel formula would be, with the initial price in A1 (say 200) and the inflation rate in A2 (say 0.03 or 3%): =A1 * (1 + A2) ^ 30 As already noted, that is probably not a very realistic model.
If you assume a specific inflation rate per year (x%), the price in a year will be (100+x)% times the current price. The price in two years will be (100+x)% of the price in one year, and in 30 years the price will be (100+x)% raised to the 30th power times the current price. (Clarified the wording.) Now all you need to do is find a way to predict what ...
Chinese currency is not freely convertible. Its exchange rate is not determined by the market but rather by the Chinese government. Thus the counter-intuitive result. In essence, the Chinese government is subsidizing exports (which is reasonable since exports is what drives the Chinese economy).
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