(Is hyper-inflation possible with a dollar set on a gold standard?)
2007-02-19 15:32:25 · 5 answers · asked by sincere12_26 4 in Social Science ➔ Economics
mmm. no... no hyper-inflation today, but what about tomorrow (or a week from now)? If the Fed wants it, it's in the Feds' hands. No?
2007-02-21 17:16:49 · update #1
As the gentleman above stated, the US is not on a gold standard, which would actually prevent a hyper-inflation since the dollar would be backed by an actual commodity.
Currently, the US inflation rate is about 3 percent. So, the dollar loses about 3 percent of its value in a year's time.
However, again, most of US goods and services are not traded with cash, but with checking or money market balances, which pay some interest. So, the erosion is even less.
2007-02-19 23:24:04 · answer #1 · answered by Allan 6 · 1⤊ 0⤋
100 dollars today is only as good in the future as the utility you derive from it. Further, that is the point of investing your money...so that it outpaces inflation by a long shot. Better find an investment that makes more than 4 percent per year.
However, we are a long way from hyper-inflation and have not had any thing close to hyper-inflation for many years. So, I guess I don't understand your point.
2007-02-20 00:33:37 · answer #2 · answered by Anonymous · 2⤊ 0⤋
Dollars are not on a gold standard now so I guess we will never know. Deflating the value of a dollar by 98% in a day or a week is very HYPER.
2007-02-19 23:37:27 · answer #3 · answered by Rich Z 7 · 0⤊ 0⤋
go shopping today.
2007-02-19 23:43:07 · answer #4 · answered by Auntie M. 3 · 0⤊ 0⤋
spend it to day ,so you won't need to worry about it...
2007-02-19 23:39:22 · answer #5 · answered by sugar 4 · 0⤊ 0⤋