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If inflation occurred constantly and smoothly, I would assume the relative prices stay in sync. If you see crazy swings that have occurred during the pandemic
by danuker 5y ago
If inflation occurred constantly and smoothly, I would assume the relative prices stay in sync.
If you see crazy swings that have occurred during the pandemic - real estate crashing in central business districts while going up for industrial areas [0] - that has nothing to do with government money printing and everything to do with pandemic restrictions.
[0] - https://www.pwc.com/us/en/industries/asset-wealth-management/assets/etre2022-graphic-7-commercial-property-price-index.svg https://www.pwc.com/us/en/industries/asset-wealth-management...
- BirAdam 5y agoThat is true. You must keep long term in mind tho. Long term all real estate prices have gone up and up with short term crashes. This is people needing to park money, which will eventually backfire when no one can afford the prices anymore.
- chii 5y ago> will eventually backfire when no one can afford the prices anymore. future people will be expected to be more productive than the past, and thus is able to afford the higher prices - at least that's the bet.