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> In fact, anyone who would do that wouldn't be smart at all, would be pretty stupid Can you expound on why this would be "stupid"? Holding dollars to exchang
by caeril 5y ago
> In fact, anyone who would do that wouldn't be smart at all, would be pretty stupid
Can you expound on why this would be "stupid"?
Holding dollars to exchange for later incurs a 7% (current dollar purchasing power loss rate) loss on top of exchange fees. The can of tuna retains its food value exactly as-is for years, with no currency exchange costs. Seems to me that the tuna beats holding dollars handily.
- lottin 5y agoCurrencies don't have inflation rates. Countries do.
- legutierr 5y agoDo two countries that share the same currency have different inflation rates? Are El Salvador and Ecuador experiencing different inflation rates than the United States?
- noselasd 5y agoYes they have different inflation rates.
- lottin 5y agoInflation rates even vary among different regions within the same country.
- louloulou 5y agonice graphs for eurozone countries https://www.euro-area-statistics.org/inflation-rates?cr=eur&lg=en https://www.euro-area-statistics.org/inflation-rates?cr=eur&...
- kragen 5y agoWhen you need some pesos to go to the dermatologist, pay someone to fix the air conditioner, or take an Uber across town, tuna is harder to resell than dollars. But the optimal level of tuna in your portfolio is nonzero, in part because sometimes the supermarket runs out, or goes on vacation, or gets shut down by the police for a week, or closes because of the rioting, and having some food in the house is a good idea.