If they print 30% more bills, prices in pesos will go up 30%. At the same time, they turn around and raise wages in pesos up by 30%. Isn´t that is zero inflation?
Why would anyone call this 30% inflation?
If they don´t print money at all, wages will stay the same, and prices will go up only by real inflation (for me real inflation this way is definitely around 5% or so). The peso could have kept its dignity at a respectable level 3:1 or 4:1 or something like that.
So what is the point of printing money in the first place?
Or am I missing something?
BTW I hate those 100 pesos bills, you need a suitcase to carry a 100 Dollars worth.
You hardly ever see those 1000 peso bills anywhere.
Why would anyone call this 30% inflation?
If they don´t print money at all, wages will stay the same, and prices will go up only by real inflation (for me real inflation this way is definitely around 5% or so). The peso could have kept its dignity at a respectable level 3:1 or 4:1 or something like that.
So what is the point of printing money in the first place?
Or am I missing something?
BTW I hate those 100 pesos bills, you need a suitcase to carry a 100 Dollars worth.
You hardly ever see those 1000 peso bills anywhere.
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