At least US bonds being priced in USD does reflect the risk and demand associate... | Hacker News

Hacker News new | past | comments | ask | show | jobs | submit

login

zkhalique on Oct 3, 2015 | parent | context | favorite | on: The primacy of the US dollar looks unsustainable

At least US bonds being priced in USD does reflect the risk and demand associated with them.

What I wonder is, how is inflation being calculated in terms of the CPI, which is essentially prices in dollars? After all, what exactly is being measured by this? If dollars the very currency which is being printed, how does measuring prices account for how much M0 money there is?

forgetsusername on Oct 3, 2015 [–]

>After all, what exactly is being measured by this?

Purchasing power of Americans.

>how does measuring prices account for how much M0 money there is?

Why does it need to? On its own, the amount of M0 is irrelevant. We care about how the effects of supply manifest in prices.

Join us for AI Startup School this June 16-17 in San Francisco!
Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact