Krugman vs Krugerrand
In honor of inflationist Paul Krugman, I call the 1976 dollar a KRUGMAN.
In 1976, 125 Krugmans bought 1 Krugerrand (on average). A Krugerrand has 1 troy oz of pure gold.
Today, as of minutes ago, 1,365 Krugmans will buy 1 Krugerrand. The U.S. has followed Krugman’s inflation policy faithfully for 34 years. It has successfully depreciated the Krugman. Where 1 Krugman bought 0.008 Krugerrand, it now buys only 0.0007326 Krugerrands. That’s a decline of 90.8425 percent in the Krugman’s price.
Where are all the supposed benefits of this massive drop in price of the Krugman? Will they appear when the Krugman drops even further to the point where it won’t purchase ANY Krugerrands at all?
In 1976, 125 Krugmans bought 1 Krugerrand (on average). A Krugerrand has 1 troy oz of pure gold.
Today, as of minutes ago, 1,365 Krugmans will buy 1 Krugerrand. The U.S. has followed Krugman’s inflation policy faithfully for 34 years. It has successfully depreciated the Krugman. Where 1 Krugman bought 0.008 Krugerrand, it now buys only 0.0007326 Krugerrands. That’s a decline of 90.8425 percent in the Krugman’s price.
Where are all the supposed benefits of this massive drop in price of the Krugman? Will they appear when the Krugman drops even further to the point where it won’t purchase ANY Krugerrands at all?
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