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Questions tagged [inflation]

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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10answers
6k views

Are you preparing for a possible dollar (USD) collapse? (How?)

After the last crisis it was easy for many to look back and say all the signs were there to indicate an impending crisis. Super-low interest rates from the FED, no down-payment loans, interest-only ...
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11answers
13k views

Is inflation a good or bad thing? Why do governments want some inflation?

Is inflation a good or bad thing? Why do governments want some inflation?
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16answers
20k views

Why would I ever put my money into a savings account that returns less than the current inflation rate?

I like a safe investment as much as the next guy. But can anyone give me a good argument on why I should invest in a bond or a savings account that returns less than inflation? It seems to me that I ...
32
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10answers
43k views

Why do governments borrow money instead of printing it?

This question is raised in the movie Money as Debt (at time index 29:00). The answer that immediately pops to my head is "because printing money causes inflation". However, according to this movie, ...
24
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8answers
5k views

Why can more jobs mean more inflation and decreased stock prices? What are other links in the chain to watch out for? [closed]

Many news outlets, such as this one (there are many examples), are reporting that the current US stock sell-off is due to a stronger-than-expected jobs report in January and fears of inflation and ...
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6answers
4k views

What does inflation mean to me?

Everyone buys different kinds of goods. For example I don't smoke tobacco so I'm not affected by increased tobacco prices. I also don't have a car so I'm not affected by the reduced oil prices either. ...
23
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5answers
5k 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 ...
20
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5answers
8k views

What does an x% inflation rate actually mean?

I've been reading some explanations of inflation and I think I generally understand what it is. What I don't understand however, and I believe this should be trivial, is what a (monthly) inflation of ...
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4answers
8k views

What Was “A Lot of Money” In 1971?

In 1971 before the United States left the gold standard, the median home price was approximately $24,000. Now, the median home price is approximately $180,000. For people who were alive then and ...
18
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8answers
2k 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 ...
18
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3answers
4k 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 ...
18
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3answers
734 views

Is there any way to know how much new money the US is printing?

There is a lot of talk about the Fed printing money. Is there any way to know how much new money is being printed and when?
18
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5answers
2k 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 ...
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4answers
10k 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 ...
15
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4answers
616 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?
14
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6answers
3k views

Should I max or min my affordability on a new home?

Situation: Around 1,000 month disposable between 2 of us. Current mortage outstanding balance is 95k on a 120k property, saving almost entirety of disposable income. Now the situation has arisen ...
14
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9answers
13k views

Should I stockpile nickels?

As the US dollar continues to be devauled the metal content value of US coins will eventually be worth more than the face value of the coins. There use to be silver in US coins but due to the ...
13
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7answers
2k 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 ...
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4answers
2k views

How much is inflation?

I'm sure it's different every year (and may even differ by country?), but surely there must be a minimum increase salaried workers would have to earn in order to simply break-even, relative to the ...
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6answers
1k 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?
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3answers
2k views

Least unsafe investment vehicle that meets or exceeds inflation?

Let's say I have an account with $30,000 set aside for long-term unemployment, medical emergency, etc. This account will most likely (and hopefully) remain unused for at least 5-10 years. I could ...
11
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3answers
558 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 ...
11
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1answer
4k views

True cost of a mortgage when considering inflation

For the purposes of this question, let's assume the following: Inflation is and will be a steady 2% I am in the 30% tax bracket and there is a home mortgage interest deduction I have a 30-year fixed ...
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5answers
2k 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 ...
10
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6answers
23k 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 ...
9
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3answers
18k 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 ...
9
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3answers
804 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 ...
9
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5answers
2k views

What is inflation?

What do people mean when they say a price is Inflation adjusted ? Like a car costing $100 in 1990 would cost $400 today adjusted to inflation? If I buy a car at $100 today and inflation is 0.5%. What ...
9
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3answers
1k 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. ...
8
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4answers
11k 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 ...
8
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4answers
641 views

How can I protect my savings against inflation? [UK]

How can I ensure that my savings keep up with inflation, even after any tax due is taken off the returns?
8
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2answers
476 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 ...
7
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4answers
955 views

Is gold subject to inflation? [duplicate]

You know, we all have inflation. You can buy less on your USD, Euros and RUBs today than year before. I was advised to buy gold if I do not want my money be eaten by inflation. Gold is advised for ...
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3answers
55k 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 ...
7
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3answers
631 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 ...
7
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4answers
9k 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?
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5answers
753 views

How to correct interest rate for inflation?

I'm looking for someone to double check my math and who can tell me if I have correctly accounted for inflation. Say you hypothetically invest $100 with 7% rate and 2% inflation. You would end up ...
7
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1answer
235 views

Why adjust for inflation annually, as opposed to realising it after the holding period?

Why do investors offset their annual returns against inflation, when inflation isn't realised until the end of the holding period (when the investor is actually spending the money)? An example: ...
6
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2answers
1k views

How does a monthly inflation rate work?

I'm struggling to understand the following inflation numbers for South Africa given here: http://www.tradingeconomics.com/south-africa/inflation-cpi Year Month Inflation 2015 Jun 4.7 2015 Jul ...
6
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1answer
2k 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, ...
6
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1answer
325 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.
6
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2answers
328 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 ...
6
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1answer
614 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 ...
6
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1answer
341 views

How to determine a reasonable rate of inflation assumption for long-term care?

Would it be reasonable to project that the cost of long-term care and long-term care insurance in the US will go up as fast as health-care inflation, or at some rate closer to the general rate of ...
5
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2answers
828 views

What does inflation actually mean? [duplicate]

Inflation, in the ordinary sense, increase in the prices of goods and services. Some economists say inflation up to 5% is even desirable. Why is this so? When governments struggle to control inflation,...
5
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2answers
407 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 ...
5
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3answers
317 views

Does the rise in ACA premiums affect employer-provided health insurance premiums?

So I hear a lot about rising premiums and that the ACA is the leading cause. Recently I heard that the majority of people still get their health insurance through their employer. Is there merit that ...
5
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3answers
463 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? ...
5
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2answers
449 views

Calculating salary loss from inflation

When it comes to inflation, I simply know that it is an increase in prices that results in a fall of the currency's value. I'd like to apply this to wages in a workplace that has not provided a pay ...
5
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3answers
232 views

Calculating worth of money at different times

I have seen some documentaries mentioning some amount of money in a particular year and then telling how much would it worth today. One such example is on the Wikipedia page of Pablo Escobar, which ...