Time at which price doubles in inflation.


by PhysicoRaj
Tags: doubles, inflation, price, time
PhysicoRaj
PhysicoRaj is offline
#1
May3-12, 02:21 AM
PhysicoRaj's Avatar
P: 291
anybody knows how to calculate the period which a commodity which faces inflation takes to double it's price, without knowing anything except the rate of inflation? You must give a very shortcut method.
Thanks.
Phys.Org News Partner Social sciences news on Phys.org
Change 'authoritarian' football culture to produce future stars, says research
Male-biased tweeting
Developing nations ride a motorcycle boom
Bignose
Bignose is offline
#2
May3-12, 03:09 AM
P: 15
If X is the rate of inflation - 100/x
PhysicoRaj
PhysicoRaj is offline
#3
May3-12, 06:01 AM
PhysicoRaj's Avatar
P: 291
Thanks.

phyzguy
phyzguy is offline
#4
May3-12, 06:14 AM
P: 2,077

Time at which price doubles in inflation.


Quote Quote by Bignose View Post
If X is the rate of inflation - 100/x
Actually, a much better approximation is the "rule of 72", which is that the number of years to double at an annual growth rate of x% is 72/x. This is because (1+p)^n ~ e^(np), and ln(2) = .69. A slight correction makes it 72 instead of 69. Try it. You'll find that (1+p)^(72/p) ~=2.0 for a wide range of p.
PhysicoRaj
PhysicoRaj is offline
#5
May3-12, 06:36 AM
PhysicoRaj's Avatar
P: 291
Quote Quote by phyzguy View Post
Actually, a much better approximation is the "rule of 72", which is that the number of years to double at an annual growth rate of x% is 72/x. This is because (1+p)^n ~ e^(np), and ln(2) = .69. A slight correction makes it 72 instead of 69. Try it. You'll find that (1+p)^(72/p) ~=2.0 for a wide range of p.
At last!!!!!!
I was waiting for someone who told me this rule! I wanted to know if this was familiar to all. Cheeeerup!!
Bignose
Bignose is offline
#6
May3-12, 04:22 PM
P: 15
Is inflation compounded though? my dollar stays a dollar year to year if I hold on to it. If I take 2% off and its... I guess it makes sense to compound an inflation rate. Stupid trick question.
phinds
phinds is offline
#7
May3-12, 04:32 PM
PF Gold
phinds's Avatar
P: 5,715
Quote Quote by PhysicoRaj View Post
At last!!!!!!
I was waiting for someone who told me this rule! I wanted to know if this was familiar to all. Cheeeerup!!
Indirection is sleazy. If you want to know something on this forum, just ask.


Register to reply

Related Discussions
Calculation for inflation time of an air bladder? Classical Physics 0
time relative to inflation? Special & General Relativity 8
Uniform Price Auction question. Why price is #Seller + 1st highest of #Buyers Social Sciences 6
inflation and time Cosmology 14
time zero glitch fades out/less need for inflation General Astronomy 7