So things get more expensive. Inflation.
What difference would it make to keep the price the same and devalue?
Secondly with inflation things get more expensive and salaries increase (have to eventually) to keep pace. Again, what’s the difference?
Not making sense, think about it.
1970 – beer was 70p Pint.
2012 – beer now £3 pint.
But it’s still a pint and costing relatively speaking a similar amount.
So what changed other than the scale we measure with?
By: TonyT - 5th September 2012 at 17:54
Bit like mars bars, 30 years plus ago the giant ones you can buy these days were about the standard size, they kept the price the same, simply reduced the size to the piddly little thing we have today as standard sizes.
By: waco - 5th September 2012 at 16:39
70 P a pint in 1970 !!!!!!!
Dont think so……its was LSD in those days.
I bought my first pint in a pub in 1977 and paid 22p for it.
Whitbread tankered (ok……I didnt know any better then).
In the Old **** in Didsbury……happy days.
All that said it is indeed a very interesting question, however it would require a very long answer (searches for old Economics text books).
I believe Harold Macmillon said (paraphrase) the pound in your pocket does not change with devaluation of currency. Alas not so !
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September 5, 2012 at 3:07 pm