inflation

[Tommy Trussell]

On 8/27/08, Stuart McGraw <smcg4191 at frii.com> wrote:
> It appears that the USA and other places in the
>  world may be headed for a period of high inflation.
>  So I would like to ask,
>
>  * Are there any special standard practices for
>   accounting during inflationary periods?
>
>  * Does Gnucash support these practices?

I hope an actual accountant weighs in, but in my opinion accounting
practices would not apply here because 1USD=1USD, or 1EUR=1EUR that is
UNTIL you trade it for something else. The problems you run into is
how to handle an exchange for one item to another as efficiently as
possible. When you're talking stocks, you don't know the actual final
price until everything "settles" after the trade. If you're trying to
estimate your current net worth in terms of another unit, such as how
much your stocks are worth in US Dollars, Australian Dollars or Euros,
you're depending upon someone's estimate of what those items might
have traded for, 15 minutes, 24 hours, or 30 days ago.