More on gold. And inflation. This article by David Leonhardt ridicules the media and others who continually talk about new record high prices in commodities such as oil or gold: They aren't adjusting for inflation! Inflation means that it costs more pounds or dollars to get the same thing at a later point in time, as you probably are well aware of. So that means that prices generally rise, and hence new record highs can be quite common.
It's a nice little explanation of this. The article then talks about the wider agenda of people touting the price of gold and is quite complicated. The first bit about adjusting for inflation though is somewhat amusing...
This blog accompanies the econ101ab Principles of Economics course given at the University of Birmingham. The lecturers for both parts of the course (101a, microeconomics and 101b, macroeconomics) will occasionally post here on matters related to lecture material. We hope to show the relevance of the concepts we are teaching at each stage of the course for helping understand how the world works...
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