Thinking Argentina or Turkey in the recent years – if the local inflation is so severe that the price of grocery in the morning vs evening (on the same day) is different, how do people make large purchases like a house or a car? How is the price determined and who would provide the long term financing?
In: Economics
Inflation between 50%-100% isn’t as severe as you think, the prices do move significantly month to month but it isn’t fast enough to distrupt settlement of asset transactions that would take days or 1-2 weeks. Maybe the prices will have increased %3-4 by then, oh well then you factor in the expected loss of value in the initial price.
Source: I lived in Turkey.
Latest Answers