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Inflation. The tax on your piggy bank.
Front
Money SenseGL-00003
Inflation
The tax on your piggy bank
The slow loss of what money can buy, year after year.
GeekLibraryMechanism
Back
GL-00003Mechanism
Your grandparents bought a cinema ticket for five rupees. The ticket did not improve. The rupee got weaker. Inflation is not prices going up. It is the value of money going down. Money sitting in a drawer loses value every year.
- At 6% inflation, 100 rupees today buys what 56 rupees buys in ten years.
- Ask a grandparent what something cost when they were your age. Compare it to today.
SourceRBI CPI data (historical)
Fisher equation, standard economics
Fisher equation, standard economics
Keep exploring
Because you read Inflation.
Money SenseGL-00001
Money
The story everyone believes
Anything a group of people agree to accept in exchange for things.
GeekLibraryMechanism
Money SenseGL-00002
Barter
The deal before money
Swapping one thing directly for another, with no money in between.
GeekLibraryMechanism
Money SenseGL-00013
Taxation
The membership fee for everything shared
A share of what people earn and spend, collected to pay for shared things.
GeekLibraryMechanism
Read as a path · 7 cards · 4 min
Understanding MoneyA short journey through the ideas behind everyday money.