Why isn’t the time value of money applied to currency in terms of purchasing power? Let’s say I have a dollar from 1930. I should be able to exchange that dollar today anywhere based on its present value, right? Doesn’t make any sense to me but I’m slow
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Money itself IS the unit of measurement of “value”. As an analogy, consider taking a small child who is the exact height of a yard stick. A unit of money (in this case a dollar) is the yard stick itself, NOT the height of the child. You’re mentally tying the height of the yardstick to the thing being measured right now, which is incorrect. The child will grow, the yardstick will not.
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