I notice that when comparing the exchange rate of various currencies to gold (relative comparison rather than absolute - absolute doesn't work since gold itself varies),
that:
- all the "good" places have low inflation and always have (i.e. Swiss Franc)
- all the poor/despot places we hear about have high inflation (i.e. Argentina, China)
and
- the countries going through economic desperation right now have higher inflation than the good times had (i.e. the UK)
- the countries which are improving typically have kept the inflation the same and the currency has strengthened (i.e. NZ dollar, Aus, not BRIC like Brazillian Real as they have benefitted from their position but not as much as Korea due to the money printing)
Can it really be so simple to tell if a country is wealthy as to look at the rate of inflation alone? Can the spector of inflation be that dominent that things such as economic growth and all politics are dwarfed by it?
I want to understand just how wealthy various countries are for when I think about business and travel before I go or interact with a place and also just to understand the world. Can it be as simple as looking at the exchange rate?
that:
- all the "good" places have low inflation and always have (i.e. Swiss Franc)
- all the poor/despot places we hear about have high inflation (i.e. Argentina, China)
and
- the countries going through economic desperation right now have higher inflation than the good times had (i.e. the UK)
- the countries which are improving typically have kept the inflation the same and the currency has strengthened (i.e. NZ dollar, Aus, not BRIC like Brazillian Real as they have benefitted from their position but not as much as Korea due to the money printing)
Can it really be so simple to tell if a country is wealthy as to look at the rate of inflation alone? Can the spector of inflation be that dominent that things such as economic growth and all politics are dwarfed by it?
I want to understand just how wealthy various countries are for when I think about business and travel before I go or interact with a place and also just to understand the world. Can it be as simple as looking at the exchange rate?
