What is wrong with hyper inflation?
- Thread starter freewilly
- Start date
lots of young people from china are so arrogant and illiterate, especially those from good families in cities. they do no know the historical of china, or the world. what they know is very limited to their surroundings. they do not even know that just 60 years back, it was hyperinflation that defeated the national party to the communist.
Quote from pspr:
China, obviously!
hmmmm.....the way I was taught TVM is (1+R)^(1/n) gives you an annualized rate of growth that covers all years and no final adjustment is needed. As a simple example:
Going Forward: $1 PV, n=30 Years, i=10%. FV calculated to = $17.4494
Go Backward: $17.4494 FV, n=30 Years, i=10%, PV calculated to = $1
Figure Rate: $1 PV, $17.4494 FV, n=30 Yeas, i calculated to = 10%
No final adjustment is required here. Perhaps you are talking oranges and I'm apples? It seems like you are adding time by adding that final adjustment.
Going Forward: $1 PV, n=30 Years, i=10%. FV calculated to = $17.4494
Go Backward: $17.4494 FV, n=30 Years, i=10%, PV calculated to = $1
Figure Rate: $1 PV, $17.4494 FV, n=30 Yeas, i calculated to = 10%
No final adjustment is required here. Perhaps you are talking oranges and I'm apples? It seems like you are adding time by adding that final adjustment.
We were talking about the supposed example of a 3,000% inflation over the last 30 years. 17 would be a 1,644.94% profit, and the i is arbitrary.
In order to get the rate, you subtract 1 off, as it is your base, and that gives the APR. I'm not following the $17.4494 FV.
If cpi(t)/cpi(t-30)-1=3,000%, then the formula to get the apr of this price rise is the figure I computed.
(1+30)^(1/30)-1=12.127% and after every 3 years by definition any cpi rise of greater than 25% absolutely is the extent to which Chinese have supposedly experienced a rise in prices known as hyperinflation.
I seriously doubt that there is even accurate data to support this, and while I'm inclined to disagree that we have had the same rise, we can look up our bls stats and see I don't think the cpi has risen even close to that much in the US or China . You might say that our data is unreliable, but when it comes to debating whether or not a capitalist nation is more accurately reported than a corrupt communist nation then there is no question that it is in China's ruling party's best interest to ignore such statistics.