W
walk2dewater
Guest
General price inflation is a vicious cycle of expectations; I expect higher prices so I am willing to pay but in turn I demand higher prices for my labour/products. In recent years expectations have been low and we've grown acustomed to year-on-year price stability. But has the property bubble and the emergence of a widespread class of "property lottery winners" altered expectations?
E.g.
*Person A saves €50,000 from wages over 5yrs.
*Person B spends all his paycheque but is 'given' €100,000 from property price growth in 5yrs
Q1: Do Person A and B have different perceptions of the value of a euro in their pocket today?
Q2: Do Person A and B have different euro value expectations going forward?
E.g.
*Person A saves €50,000 from wages over 5yrs.
*Person B spends all his paycheque but is 'given' €100,000 from property price growth in 5yrs
Q1: Do Person A and B have different perceptions of the value of a euro in their pocket today?
Q2: Do Person A and B have different euro value expectations going forward?