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Eurozone Inflation

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Comments

  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    Thrugelmir wrote: »
    Will also slow GDP. Consumer spend accounts for a high proportion of UK activity. So a catch 22 situation. Over burdened with debt and a slowly recovering economy, with an unsustainable trade deficit. Not an easy set of circumstances to address. With rebalancing of the economy going to take a long long time.

    what exactly is an 'unsustainable' trade deficit?

    is that something that goes on for another 30 years?

    or something that auto corrects?
  • ILW
    ILW Posts: 18,333 Forumite
    chucky wrote: »
    Some posters still don't understand the concepts of inflation, inflation basket of goods and currency rates.[/QUOTE
    The figures are a fair indication of the buying power of ones wages or savings on a monthly or yearly basis. The cause is a different matter.
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    ILW wrote: »
    chucky wrote: »
    Some posters still don't understand the concepts of inflation, inflation basket of goods and currency rates.[/QUOTE
    The figures are a fair indication of the buying power of ones wages or savings on a monthly or yearly basis. The cause is a different matter.
    Errr no, inflation figures do not have wages included in their calculations.

    If you prefer more people not working with unemployment at 12% or 20% in some countries you have a serious issues.
  • ILW
    ILW Posts: 18,333 Forumite
    chucky wrote: »
    ILW wrote: »
    Errr no, inflation figures do not have wages included in their calculations.

    If you prefer more people not working with unemployment at 12% or 20% in some countries you have a serious issues.
    Think you may be missing the point.
    A 1% wage rise against 3% inflation is a pay cut. A 1% pay rise against 1% inflation is a least keeping up ones standard of living.
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    ILW wrote: »
    chucky wrote: »
    Think you may be missing the point.
    A 1% wage rise against 3% inflation is a pay cut. A 1% pay rise against 1% inflation is a least keeping up ones standard of living.
    No point missed.

    Thinking that inflation at 2% with pay rises at 3% with unemployment at 20% is a good thing is looking at it from a simpletons point of view.
  • ILW
    ILW Posts: 18,333 Forumite
    chucky wrote: »
    ILW wrote: »
    No point missed.

    Thinking that inflation at 2% with pay rises at 3% with unemployment at 20% is a good thing is looking at it from a simpletons point of view.
    Are you saying that high inflation decreases unemployment?
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    ILW wrote: »
    chucky wrote: »
    Are you saying that high inflation decreases unemployment?
    No that's not what I said.

    I'm saying either you don't understand inflation or stop using the Daily Mail as your source of news.
  • ILW
    ILW Posts: 18,333 Forumite
    chucky wrote: »
    ILW wrote: »
    No that's not what I said.

    I'm saying either you don't understand inflation or stop using the Daily Mail as your source of news.
    You have on more than one occasion linked low inflation with high unemployment, what is the connection?
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    ILW wrote: »
    chucky wrote: »
    You have on more than one occasion linked low inflation with high unemployment, what is the connection?

    There is no link between inflation and unemployment.

    Inflation is in all places and at all times a monetary phenomenon.
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    Generali wrote: »
    ILW wrote: »

    There is no link between inflation and unemployment.

    Inflation is in all places and at all times a monetary phenomenon.
    Exactly.

    Judging or comparing an economy on the inflation rate is pointless. Looking at unemployment as well as the other indicators gives you a better idea to the state of an economy.
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