🚀 go-pugleaf

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.

In this sense all dictatorships and authoritarian will produce
inflation. It makes sense for sellers and merchants to rise prices so
that people cannot buy as much as they want; that way the moment a war
explodes the merchants and selles have a good stock to begin with. They
are planning in advance for their own welfare (rationalyy), without
taking into account production costs nor demand...

Fabrizio J Bonsignore now Danilo Jose Bonsignore
Danilo Bonsiñor Danilo Bonsiñore