How does money gain value? Why would £100 from 100 years ago be worth more now?
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It doesn’t gain value, it loses value. I believe what you’re talking about is when you see something that says that something cost some amount 100 years ago and, in parenthesis, it says how much that would cost now. For example: £100 in 1922 (£1,000 today).
They aren’t saying that 100 1922 pounds are *worth* 1,000 2022 pounds. They’re saying that £1,000 *today* could buy as much stuff as £100 could 100 years ago. The value of money *lost* value because of inflation.
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