Examining the value of money in england over the long term (1259-2009)
This paper seeks to analyze the value and purchasing power of money in England over 750 years, during which time the pound has lost almost all of its value. This paper proposes a suitable methodology of measuring nominal inflation in England over the long term, by constructing a wholesale commodit...
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| Format: | Article |
| Language: | English |
| Published: |
Canadian Center of Science and Education
2013
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/44656/1/Abdullah%2C_13-3%2C_England.pdf http://irep.iium.edu.my/44656/ http://dx.doi.org/10.5539/ijef.v5n3p73 |
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| Institution: | Universiti Islam Antarabangsa Malaysia |
| Language: | English |
| Summary: | This paper seeks to analyze the value and purchasing power of money in England over 750 years, during which
time the pound has lost almost all of its value. This paper proposes a suitable methodology of measuring nominal
inflation in England over the long term, by constructing a wholesale commodity price index in order to
determine the purchasing power of money, being the inverse of prices. The index adjusts indices of the value of
gold and silver, to determine the purchasing power of gold, silver, and also real prices, thereby providing a
suitable technique to measure the store of value function of money. In so doing, we discover that a monetary
theory of value accurately interprets the empirical evidence. |
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