Price inflation since 2000 in France

[bernardd]

To discuss concrete figures for monetary inflation, I was digging into the ECB's website: http://www.ecb.int/stats/money/aggregat ... ex.en.html

What interests me at the moment is the currency, of which the latest figures are visible in this pdf file

We often hear that the currency is the 3 5 column 1 index (2.3.1.5). From what I understand, it's only the currency in the short and medium term, you have to add the 7 column. If we do not take into account the long-term currency column 7 credits are higher than M3, which seems impossible by definition. However, this is only marginally happening in a few years of history, but I suspect that these figures are not precise, because they are obtained by the aggregation of the statements of the banks, on countries whose number has evolved over time.

I was looking for historical figures, which I put in this excel file.

You will also find outstanding loans to governments and individuals.

Conclusion: 118% increase in the total currency since 1997, ie a creation of 8716G € (G = Giga = billion) from 7375G € to 1997.

Only on M3 because the other figures are missing, the increase has been from 679% of 1980 to 2009, ie a creation of 8136G € from 1198G € to 1980, excluding long-term money.

This creation in itself has lowered the value of the € by dilution.

But this is only one aspect: who benefited from the created €? where did they go?

If you have not benefited from this creation, it is necessary that your investments in currency and your incomes all increased at the same speed not to have lost standard of life compared to the currency ...

And the only solution to neutralize monetary inflation is that the currency created is spread over every living European citizen: that is the whole idea of universal dividend.

[bernardd]

We have just seen the evolution of the face value of money in relation to the money supply: the cake share remains of 1, but the size of the cake has increased so much that the share has become relatively smaller.

It was monetary inflation.

But money is also used to buy: what is the price of grain of rice? in 1980? in 1997? in 2009?

This is monetary inflation: for the same face value of 1 €, I can buy less grains of rice.

If someone has been changing the price of grain of rice for a long time?

Still, not only has the value of my € from my storage or my income decreased in relation to the totality of euros, but in addition the face value of goods and services has increased.

Total inflation is the sum of monetary inflation and price inflation ...

[Obamot]

... I was going to come ... But what "inflation" are we talking about?

Ok, I imagine that if you did not answer on the points above, it is that the reasoning was correct?

To answer your last two posts, we can understand, thanks to the document .pdf which you linked, what "the money supply" (all values ​​that can be converted into cash) VS "monetary value".

At some point, this distinction brings out the difference between "Inflation as a consequence" VS "Inflation as a cause of a consequence".

In the first case, inflation is perceived as an increase in the money supply in circulation (money printing) => no building of wealth and loss of confidence in the monetary value (current case of the US dollar amha)
In the second case, it is an "excess of solvent demand over supply" => the rise in prices is just the consequence (this is called "regulation of supply VS demand ", the supply is not sufficient => prices increase).

This creation in itself has lowered the value of the € by dilution.

But this is only one aspect: who benefited from the created €? where did they go?

In this case of "value creation" we are indeed in the scenario of "supply which is not sufficient to cover demand" => prices increase ...

What the central banks are trying to make believe is in the miracle solution of "price stability" described as the panacea, and where the rise in prices is durably very low or zero (thus maintaining the uncertainty of economic agents at a low level). This is obviously an illusion for the population which aims to reassure them, in reality throughout the process, there is production of phenomenal wealth which allows the explosion of the speculative bubble in due course ... C This is why now that you tell us it, and repeat it to us, I only see the solution of the universal dividend, as an ethical, equitable and therefore acceptable solution. Everything else seems to be blah, blah.

Now it would be necessary to see what would be the means of the speculators (ie the financial circles) to circumvent this new system. I do not think that if it were established, they would sit idly by ...

Question: when value is created simultaneously with the increase in prices, can we still speak of "inflation"?

(This is where I seem to remember that in course we were told that a negative inflation had beneficial consequences and vice versa ... in short, a real thing establishes so that nobody understands that poic)

[bernardd]

Ok, I imagine that if you did not answer on the points above, it is that the reasoning was correct?

No, it's because I did not understand what was in question and answer ... and that there were a lot of points.

If you were dealing with one thing at a time with a specific question: -?

At some point, this distinction brings out the difference between "Inflation as a consequence" VS "Inflation as a cause of a consequence".

We are dealing with a highly nonlinear dynamic system: the consequence of a given instant is the cause of the next moment ...

In the second case, it is an "excess of solvent demand over supply" => the rise in prices is just the consequence (this is called "regulation of supply VS demand ", the supply is not sufficient => prices increase).

A little reductive! There is also the rising cost that is spreading in the production chain, which causes a drop in consumption when the prices reached fall below the acceptable psychological / financial thresholds for the purchase.

This creation in itself has lowered the value of the € by dilution.
But this is only one aspect: who benefited from the created €? where did they go?

In this case of "value creation" we are indeed in the scenario of "supply which is not sufficient to cover demand" => prices increase ...

Sorry, not understood :-(

[Christophe]

Heard at the FR2 newscast tonight: the voice of the north is currently investigating the price increase since the changeover to the euro.

Apparently in the field it is increasing more than in "official" studies ...

http://www.lavoixdunord.fr/actualite/Do ... ambe.shtml

http://www.lavoixdunord.fr/France_Monde ... isse.shtml

Change to the euro, economic crisis, how have prices evolved over the past ten years? With what consequences on our purchasing power? We conducted the survey from your receipts! First part.

A family at breakfast time. We are in the year 2000. The baguette cost 2,60 F (0,40 €), Ricoré 25,80 F (3,93 €), jam 6,70 F (1,02 €), Nutella 7,67 F (1,17 €), orange juice 11,35 F (1,73 €). .. Ten years have passed. The same family is having breakfast. For what cost today? That's what this first part of our price survey reveals.

An investigation whose originality is that it is based on the receipts that we have collected from you, readers. Thousands of tickets tracing a decade of racing.

An opportunity to know if the consumers that we are have been made or not by the changeover to the euro, if the crisis of 2008 has been profitable in terms of consumer prices, if finally our purchasing power has increased or not.

Such a survey is more of the work of the craftsman than that of INSEE (read our method below). The principle being, for once, to address the issue of price developments other than through indices only calculated at the national level.

Is the truth in the tickets? We are convinced that they have a lot to teach us. Analyzes and testimonials will complete the whole over the six components. Next so tomorrow and Saturday, then next week the 21, 22 and 23 October.

Practical examples: http://www.lavoixdunord.fr/France_Monde ... etit.shtml