Re: Money's value is a function of population!

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Article #3023

#3023

From: Fabrizio J Bonsignore
Date: Sat, 09 Jul 2005 15:55

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> The less people there is, the less value money has and the higher
> prices-inflation is! It explains the hyperinflation of the Nazi era,
> for instance...
> >8)>
> (a very complex function, of course, but then...)
> The value of money in real terms is a function of "future" production,
> so if a war is anticipated prices will grow, since what is anticipated
> is the future loss of people and knowledge.

Note that, ceteris paribus, countries with secessionist pressures will
experience higher rates of inflation consistently while those pressures
last than countries with stability. The more stable a country is in
terms of no *homeland* wars, the lower the interest rate will be.
Terrorism may  have an influence if it is persistent, but if the people
don't perceive it as a threat to actual productive capacities (or
distributrion) or future availability of goods, it won't have the
effect of increasing the inflation rate.

Fabrizio J Bonsignore now Danilo Jose Bonsignore

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From: "Fabrizio J Bonsignore" <fbonsignore@beethoven.com>
Newsgroups: sci.econ,harvard.general
Subject: Re: Money's value is a function of population!
Date: 9 Jul 2005 08:55:39 -0700
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