The economics of inflation is comparable to aging process. The amount of money we used to spend to by a loaf do bread have changed over time. When the entire meal of day used to come in one fraction of the amount of one coin in todays time, this is what is impact of time.
As a young child I used to get 10 candies in a one coin. The value of gold has been increasing though the gold as it is same, the buying capacity is same, the employment rates are same. This monetary coin is a fraction of the minimum coin value of todays time. Hence, to conclude this is just an example of what happens to value if a coin over time. What changes is businesses, way to do it, what we do and how we do.
What used to come in one cent is now for 5 dollars. The exact relation between time zones we live in and value of least quantity of money we have are proportional. The relation need to be learned with help of Mathematical Numerical Approximation to get the curve of relation.
The areas we live in are different time zones, the value of one dollar vary in all zones. These are economics of value of money. And this can be learned with help of Artificial Intelligence and Mathematical Numerical Approximations.
So the fact that money is subject to aging, what is the solution to help people deal with it. The solutions are what we had been doing all these times, viz. increase in dearness allowance. Getting new coins and redefining the new minimum.
Why money is subject to economics of aging is another question. This can be understood as the fact that money is a factor of time that moves with us, increase is a hypothetical quantity as all things related to it increase in value, if prize rise, so does salaries, so does the values and so does the cost of basic medium use to compare the relative value of a currency.
Just like time is measured in comparison to Greenwich Medium Time , so is money measured with respect to a standard historic quantities. Only thing needed after a time is to rewire all the new measurement values. The value of money had been increasing with time and it will, this is the way it is to move ahead. To increase competitive economics and to set balance in economics.
You must log in to post a comment.