5 ms·
> If you've a house worth 200k and its value goes up 5%, then a year later you are 5% wealthier. If inflation is also 5%, your profit is 0%.
by vincentmarle 5y ago
> If you've a house worth 200k and its value goes up 5%, then a year later you are 5% wealthier.
If inflation is also 5%, your profit is 0%.
- lkrubner 5y agoYour nominal profit is 5% and your real profit is 0%, good point, but unrelated to the conceptual issue of whether an increase in the nominal price of an asset can be coherently understood to be a form of "inflation."