Inflation Guide Chapter 3: Nominal versus real prices.

If there are changes in the price level, how do we use that information to convert the prices we see everyday into numbers that we can actually compare? Learn how to convert prices into "real" values.
See the complete citizen's guide to understanding inflation: www.inflationguide.org
© International Budget Partnership, 2012.
Author: Jason Lakin, Program Officer and Research Fellow, International Budget Partnership
Creative design and animation: Formula D interactive
Website: www.formula-d.com
This is a publication of the International Budget Partnership. The IBP produced the guide to support civil society, citizens, and other public finance stakeholders in thier efforts to understand and influence public finance processes and policies and other educational purposes. If you would like to use some or all of the guide for educational, noncommercial purposes, please contact: [e-mail] for permission to do so.
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[@hackerexpose3630]

Very confusing

[@miguelsandoval8203]

basically nominal is what you see listed, real value is when you adjust for inflation other wise purchase power

[@mateoerwin9692]

This shit makes no sense to me

[@purpose4735]

😂😂

[@harikishan5158]

Hahahaaha

[@moneanderson7269]

saying 2002 is sp damn annoying

[@danicoleb5394]

I got everything up until the last part. The final interpretation of what the real values mean in the example ALWAYS loses me. I get that he's saying the price level tripled but is it nominal values? And after converting to the 2002 dollars, the real price is actually less thus she spent less in real terms... hence why she got less "product" in a sense??? Is that correct? Lord help me.

[@MovieAudio]

This is brilliant! Thank you very much

[@prernasinghchauhan8987]

it's a good explanation, thankyou

[@mathieu9600]

Clear video! However, there is a little mistake in your video. If $200 in 2002 equals $66 in 2010, then your weight scale at 2:55 is incorrect. The $66 should be $33 (1/3). Just saying :)

[@TheWealthBuildingJourney]

Did you remember to multiply the (1/3) by 200? Accounting for inflation = inflation rate x nominal price, so 66 ~ (1/3) x 200

[@RocioNicte]

nice video