Inflation and gains

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  • May 27, 2015 at 5:42 pm #194338
    JSPERBER
    Participant

    Can someone explain to me why do you recognize a gain for monetary assets during times of inflation?

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  • May 27, 2015 at 6:00 pm #667458
    JSPERBER
    Participant

    Is this logic correct from the sellers perspective?

    More inflation, means your goods are more expensive, which means the foreign entity needs to pay more money for the goods (since those goods are more expensive), which ultimately results in a gain.

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