It is argued that people tend to view their wealth and income in nominal monetary terms rather than actual. In other words, people are presumed to ignore inflation, believing that a dollar is worth the same as last year.
It is argued that people tend to view their wealth and income in nominal monetary terms rather than actual. In other words, people are presumed to ignore inflation, believing that a dollar is worth the same as last year.
I would argue people ignore what inflation provides them. They look at it as losing purchasing power which isnt the case.
A dollar goes a lot further for oil than it did 15 years ago. In fact that is true for most commodities. We also see a plethora of things that can be purchased that wasnt the case a few decades ago.
The inflation situation is the most misunderstood topic I can find.
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