{"id":3113,"date":"2024-06-12T20:22:19","date_gmt":"2024-06-12T20:22:19","guid":{"rendered":"http:\/\/localhost\/dpetkovski\/?p=3113"},"modified":"2024-07-03T19:51:33","modified_gmt":"2024-07-03T19:51:33","slug":"inflation-explained","status":"publish","type":"post","link":"http:\/\/localhost\/dpetkovski\/inflation-explained\/","title":{"rendered":"Inflation Explained"},"content":{"rendered":"

I’ll start with a story from 2014.<\/p>\n

A friend from Macedonia started an interesting discussion – how much money a person would need to stop relying on a salary:<\/p>\n

“In our country”<\/em>, he said, “you can live comfortably on \u20ac400 per month, which is less than \u20ac5k per year. Multiply that by 40 (years), and you get \u20ac200k.”.<\/em><\/p><\/blockquote>\n

It sounded simple and it made sense. Those amounts really covered the necessary expenses for a person and there was no noise of multi-million amounts being randomly thrown.<\/p>\n

But he missed something.<\/strong><\/p>\n

The biggest oversight was the “increase in prices of goods and services over time”<\/em>. And it has a name.<\/p>\n

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Table of Contents<\/p>\n