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The Inflation Myth and the Wonderful World of Deflation
What if everything you’ve learned about inflation is wrong?
The Inflation Myth and the Wonderful World of Deflation illustrates our rapidly changing world where constant technological innovation leads to cheaper and better products. These changes are no longer reflected in the ways we measure inflation. Renowned investor and author Mark Mobius persuasively argues that what we believe to know about inflation today does not reflect the reality any longer. It is a myth, a legend, a fable, and, yes, a falsehood for a number of reasons.
The Inflation Myth and the Wonderful World of Deflation tackles a number of fascinating topics,
The political nature of inflation measurement where governments manipulate and exploit inflation numbers to fit their economic programs The extreme difficulty involved in gathering accurate data to measure inflation and the resulting inaccuracy of those measures The error of using currencies to measure inflation when those currencies are continually being debased by the governments who issue them Finally, and most importantly, the advances in technology and automation which are leading to continuously falling costs for goods and services Perfect for anyone with even a passing interest in macroeconomic phenomena or government policies, which are significantly impacting people's everyday lives around the world, The Inflation Myth and the Wonderful World of Deflation provides a remarkably compelling and provocative view of stunning originality.
The Inflation Myth and the Wonderful World of Deflation illustrates our rapidly changing world where constant technological innovation leads to cheaper and better products. These changes are no longer reflected in the ways we measure inflation. Renowned investor and author Mark Mobius persuasively argues that what we believe to know about inflation today does not reflect the reality any longer. It is a myth, a legend, a fable, and, yes, a falsehood for a number of reasons.
The Inflation Myth and the Wonderful World of Deflation tackles a number of fascinating topics,
The political nature of inflation measurement where governments manipulate and exploit inflation numbers to fit their economic programs The extreme difficulty involved in gathering accurate data to measure inflation and the resulting inaccuracy of those measures The error of using currencies to measure inflation when those currencies are continually being debased by the governments who issue them Finally, and most importantly, the advances in technology and automation which are leading to continuously falling costs for goods and services Perfect for anyone with even a passing interest in macroeconomic phenomena or government policies, which are significantly impacting people's everyday lives around the world, The Inflation Myth and the Wonderful World of Deflation provides a remarkably compelling and provocative view of stunning originality.
237 pages, Kindle Edition
First published August 1, 2019
31 people are currently reading
311 people want to read
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Displaying 1 - 8 of 8 reviews
January 5, 2021
The main point is that inflation is an unreliable metric, especially with the amount of impact the number has. He also points out that if you take a closer look, the US is in a period of deflation rather than inflation. Definitely left me with more questions than answers (a good thing!).
March 31, 2021
As most know, Dr Mobius has written a number of useful books on various topics affecting the emerging market assets class, and his most recent piece, The Inflation Myth, contains some interesting insights for those that wish to (re)acquaint themselves with this phenomenon. I’ll only touch on a few aspects of the book that I think are particularly instructive to today’s environment so that inflation might be put into a larger context going forward.
Chief among Mobius’ first tasks is to lay out the history of inflation, from the travels of Marco Polo and the Tang Dynasty’s debasement of Jiaozi (aka certificate of exchange) given its funding needs, to the Roman Empire’s degradation of its currency, beginning with Nero’s efforts to reduce the silver content of the coins in circulation. Dr Mobius also devotes time to explaining hyperinflation, the connection between the money supply and inflation, and various exercises in measuring inflation. This latter chapter is most interesting since the quantification of price movements are complicated by the ability to access relevant data, the oftentimes difference between rural and urban inflation (Mobius uses China’s transition to a market economy to illustrate the point), and what inflation numbers tend not to capture.
Also useful is the chapter on how governments manipulate the numbers and how various explanatory models tend not to do the best job in explaining the actions of government towards inflation, such as the Phillips Curve’s postulate of the positive relationship between economic growth, inflation and lower unemployment which fell apart in the ‘70s during the period of ‘stagflation.’
The book offers some concluding thoughts on inflation: indices are constantly changing in their composition as stats people try to ensure they reflect changes in consumption, which makes understanding price changes difficult over time; inflation has not occurred in isolation, since, for example, wages and incomes have sometimes raced outpaced inflation numbers; and relative to incomes, the cost of many items have fallen and continue to decline (which is particularly the case with electronic goods).
Taken together, Dr Mobius’ book provides us with an improved understanding of the world of inflation and with it the ability to be better positioned to profit in a way that is not captured by the ‘talking heads’ on television or the inflammatory headlines of various online news sources.
Chief among Mobius’ first tasks is to lay out the history of inflation, from the travels of Marco Polo and the Tang Dynasty’s debasement of Jiaozi (aka certificate of exchange) given its funding needs, to the Roman Empire’s degradation of its currency, beginning with Nero’s efforts to reduce the silver content of the coins in circulation. Dr Mobius also devotes time to explaining hyperinflation, the connection between the money supply and inflation, and various exercises in measuring inflation. This latter chapter is most interesting since the quantification of price movements are complicated by the ability to access relevant data, the oftentimes difference between rural and urban inflation (Mobius uses China’s transition to a market economy to illustrate the point), and what inflation numbers tend not to capture.
Also useful is the chapter on how governments manipulate the numbers and how various explanatory models tend not to do the best job in explaining the actions of government towards inflation, such as the Phillips Curve’s postulate of the positive relationship between economic growth, inflation and lower unemployment which fell apart in the ‘70s during the period of ‘stagflation.’
The book offers some concluding thoughts on inflation: indices are constantly changing in their composition as stats people try to ensure they reflect changes in consumption, which makes understanding price changes difficult over time; inflation has not occurred in isolation, since, for example, wages and incomes have sometimes raced outpaced inflation numbers; and relative to incomes, the cost of many items have fallen and continue to decline (which is particularly the case with electronic goods).
Taken together, Dr Mobius’ book provides us with an improved understanding of the world of inflation and with it the ability to be better positioned to profit in a way that is not captured by the ‘talking heads’ on television or the inflammatory headlines of various online news sources.
November 20, 2022
While many people think and believe that the world is moving towards inflation, Mark has proved with his research and statistics taken from many countries that inflation, indeed, is a myth.
I started reading this book when I had no idea of inflation and what is it, to be honest. The book covered the basics of inflation, the history of it, hyperinflation, the importance of inflation numbers, controlling and manipulating it, and finally, the wonderful world of deflation.
When I saw this book, I knew I had to read it because it not only tells about the theoretical knowledge of inflation, but it speaks the practicality of different countries using the original surveys conducted by different bodies.
It's a well-detailed and well-researched book, especially for beginners who want to understand the economy. Written in simple language and intriguing writing style, Mark shares how the normal people are living in the myth. The inflation numbers have been manipulated in the past by countries like China, Japan, etc. He speaks about the CPI that is used to measure it.
After all, it's about the world of deflation we are living in.
I enjoyed reading the facts the most along with the figures and statistics. He also shares about the inflation of India, which interested me the most.
Overall, it's the perfect guide with basics for all the economists.
I started reading this book when I had no idea of inflation and what is it, to be honest. The book covered the basics of inflation, the history of it, hyperinflation, the importance of inflation numbers, controlling and manipulating it, and finally, the wonderful world of deflation.
When I saw this book, I knew I had to read it because it not only tells about the theoretical knowledge of inflation, but it speaks the practicality of different countries using the original surveys conducted by different bodies.
It's a well-detailed and well-researched book, especially for beginners who want to understand the economy. Written in simple language and intriguing writing style, Mark shares how the normal people are living in the myth. The inflation numbers have been manipulated in the past by countries like China, Japan, etc. He speaks about the CPI that is used to measure it.
After all, it's about the world of deflation we are living in.
I enjoyed reading the facts the most along with the figures and statistics. He also shares about the inflation of India, which interested me the most.
Overall, it's the perfect guide with basics for all the economists.
April 8, 2024
Rather basic and rudimentary treatment, replete with grammatical errors throughout the second half, the conclusion could not support itself with sufficient evidence or sources. The author presents us with quotations telling us that deflation could be onerous towards debtors, but he makes no case as to why we should dismiss these concerns, instead waxing on about the wonders of technological innovation.
Nonetheless, this rather unambitious book seems to avoid making any terrible missteps, and does not perpetuate any falsehoods. It might teach you about inflation, if you know little about the subject.
Also, quoting Robert Kiyosaki as some sort of expert alongside Janet Yellen or Dean Baker was a weird choice.
Nonetheless, this rather unambitious book seems to avoid making any terrible missteps, and does not perpetuate any falsehoods. It might teach you about inflation, if you know little about the subject.
Also, quoting Robert Kiyosaki as some sort of expert alongside Janet Yellen or Dean Baker was a weird choice.
February 26, 2023
A good overview of what inflation is, it’s many facets, and purposes it presents. Hopefully in a couple years he will be right about his deflation argument and hopefully we all will have locked in our 6-8% dividends.
April 9, 2023
**Note to self**
Inflation index is not always a reliable source for the real interest rate
We are living in a deflationary age because of technology advancements and efficiency especially in good and tech
Inflation index is not always a reliable source for the real interest rate
We are living in a deflationary age because of technology advancements and efficiency especially in good and tech
April 18, 2021
Fascinating theory! But has got some truth to it.
January 30, 2021
This book was a recommended read on Canada's Business News Network TV. It is a short work and it does contain lots of information that is available on the web.
But the author has collected it and presented an opinion that is very sound.
I recommend it, especially the cheaper Kindle version.
I also recommend "pricedingold.com" which he refers...
But the author has collected it and presented an opinion that is very sound.
I recommend it, especially the cheaper Kindle version.
I also recommend "pricedingold.com" which he refers...
Displaying 1 - 8 of 8 reviews