Crypto and Fiat Currencies
Does anyone else wonder why economists, central bankers and other market commentators talk so much about exchange rates, and inflation targets; and never talk about the half-life of currencies? I find this quote from a central banker sobering… 1 Based on consumer price data, an item that cost R1 in 1960 would today cost R96.79. The rand has effectively lost 99% of its 1960 purchasing power. Given the high inflation in the second half of the twentieth century, figures for the major currencies are similar but not as extreme: the US dollar has lost 88%; the Swiss franc has lost 76%; and the British pound has lost 95% (based on the World Bank consumer price data). 1 comments on Hacker News.
Does anyone else wonder why economists, central bankers and other market commentators talk so much about exchange rates, and inflation targets; and never talk about the half-life of currencies? I find this quote from a central banker sobering… 1 Based on consumer price data, an item that cost R1 in 1960 would today cost R96.79. The rand has effectively lost 99% of its 1960 purchasing power. Given the high inflation in the second half of the twentieth century, figures for the major currencies are similar but not as extreme: the US dollar has lost 88%; the Swiss franc has lost 76%; and the British pound has lost 95% (based on the World Bank consumer price data).
Does anyone else wonder why economists, central bankers and other market commentators talk so much about exchange rates, and inflation targets; and never talk about the half-life of currencies? I find this quote from a central banker sobering… 1 Based on consumer price data, an item that cost R1 in 1960 would today cost R96.79. The rand has effectively lost 99% of its 1960 purchasing power. Given the high inflation in the second half of the twentieth century, figures for the major currencies are similar but not as extreme: the US dollar has lost 88%; the Swiss franc has lost 76%; and the British pound has lost 95% (based on the World Bank consumer price data). 1 comments on Hacker News.
Does anyone else wonder why economists, central bankers and other market commentators talk so much about exchange rates, and inflation targets; and never talk about the half-life of currencies? I find this quote from a central banker sobering… 1 Based on consumer price data, an item that cost R1 in 1960 would today cost R96.79. The rand has effectively lost 99% of its 1960 purchasing power. Given the high inflation in the second half of the twentieth century, figures for the major currencies are similar but not as extreme: the US dollar has lost 88%; the Swiss franc has lost 76%; and the British pound has lost 95% (based on the World Bank consumer price data).
Hacker News story: Crypto and Fiat Currencies
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October 24, 2021
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