Inflation is a funny thing

kenya-shillingWhen this coin was minted in 1971, it could buy a lot more than it will today.

I will never understand world economies. Why does the price of petroleum go up and down? Why does the stock market dive when there is a the slightest whiff of a rumor about some economic change, even if it is fully unsubstantiated? Why do the supermarkets drop prices on staple foods all at the same time when if they kept the prices higher, they would profit more?

I think the real answer is that no one knows except God.


2 Replies to “Inflation is a funny thing”

  1. I had to take three classes in economics in order to get my journalism degree… and was dreading them. Surprised to find the stuff fascinating – would have taken more had I started sooner. Remember my “macro” prof filling a whiteboard (or was it a blackboard in those days?) with complicated diagrams connecting various trends and actions with results and implications. But can anyone really say with confidence, “So then, THIS is how it works”! Enough to get an “A” in Econ 101, not enough to predict these changes with much accuracy!

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