While German inflation is 2% (Germany is the engine of Europe)
http://www.global-rates.com/economic-indicators/inflation/consumer-prices/cpi/germany.aspx
More inflation data here:
http://www.global-rates.com/economic-indicators/inflation/inflation.aspx
(Not on the list) Maltese inflation is 4.4% and Cypriot inflation is 4.5%. How those inflation rates can be so differnet in the first place? It's a common market, there are no internat duties the only thing I can think of is that they have to keep raiesing the taxes year on year in Malta and Cyprus if we consider the same inflation rates persist over a perios of time.
Second example: Hungary which is not in the eurozoen has an inflation of 6.6%:
http://www.global-rates.com/economic-indicators/inflation/consumer-prices/cpi/hungary.aspx
How can it be so different from the core eurozone average of 2.6%?
The data suggest that the Hungarian forint gets devalued at a constant rate but if we look at the graph:
http://finance.yahoo.com/echarts?s=EURHUF=X#symbol=;range=5y;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;
it shows it has some ups and downs but it hes no downtrend it is flat in the long run.
Am I missing something?
Higher price inflation does not necessarily mean higher prices.
The regions with high price inflation may be in the process of catching up price-wise from bottom up.
Thanks, I see!
I will go out on a limb here and say that most if not all of these inflation computations are just simply outright lies. If you want the real inflation numbers then look at what inflation is: New money and credit not backed by savings. So that would be the TMZ or true money supply or the excess reservers in the banking system. Or look at the price of gold, how come that outpaces inflation? The miners of the world are pulling gold out of the ground all of the time.
As for prices rising, it is not a matter of if prices will rise but of which prices and when. In the short term where emotion rules it is possible to have all sorts of price changes some even negative. In the long run however the trends are always higher and the rates are much higher than the inflation/price rise computations.
> I will go out on a limb here and say that most if not all of these inflation computations are just simply outright lies. If you want the real
> inflation numbers then look at what inflation is: New money and credit not backed by savings. So that would be the TMZ or true money
> supply or the excess reservers in the banking system.
What is TMZ?
By the way I read somewhere that since the 2008 crisis the money supply in China tripled, in Europe doubled, in the US maybe got to 1.5 times as much as before. Maybe my numbers are not correct but they are in a similar ballpark. Is that correct or possible?
Varying rates of velocity and output. The EU is not truly and wholly economically integrated. The integration that defines that zone is arbitrary and forced (i.e., largely illusory).
"If we wish to preserve a free society, it is essential that we recognize that the desirability of a particular object is not sufficient justification for the use of coercion."
> Varying rates of velocity and output.