One of the things an investor should understand is the inevitable debasement of currency. But, every price series is different. Back in September we had a blurb at the end of a post:
If I recall correctly, the Ming Dynasty had to repudiate paper money in the 1450's to end a hyperinflation.
Update: I am pleased with myself.
Found this quote from "A History of Money":
|1448||Hyperinflation in China|
|The Ming note nominally worth 1,000 cash has a market value of only three. |
Here, from Division of Labor, are some topical datapoints:
From the Nov. 17, 1907 NYT:...MORE
A turkey at 35 cents a pound is not to be considered by the average housekeepers, and other things one is used to serving at a Thanksgiving dinner being equally expensive, very few persons feel that they can afford to follow the old custom of giving a big family dinner on a National feast day.We bought our turkey today for $0.69 per pound (I could have paid less and I could have paid more). Thirty-five cents in 1907 was approximately $7.50 in 2006. Ouch...at $150 (equivalent) for a twenty pound bird, I am not sure I would be hosting Thanksgiving dinner either.
The American Farm Bureau at their "Voice of Agriculture" site claims that this year's dinner for 10 will average around $43.
Here's the nominal and real costs for Thanksgiving dinner since 1986.
More on Thanksgiving prices c. 1907A follow up on yesterday's discussion of turkey prices, the Nov. 19, 1907 NYT reports the following prices for Thanksgiving staples (perhaps an undergraduate paper lies in these data?):