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October 7, 2006

Inflation, what will happen in a hundred years?

Filed under: Economics — Fei @ 4:39 pm

I understand that a planed inflation can stimulate economy. The current monetary policy tries to keep the inflation low but avoids deflation. Since early 70s, paper money is not directly linked to gold or silver. What keep its value? Will paper money always worth less and less in the future, and it’s beneficial? Is it unavoidable that $100 bill in 100 years will only have the same purchase power as $50 today? That’s the destiny of market? Maybe we will see $1000, or even $5000 bills soon 😉

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