I’m not sure that inflation makes sense—this money isn’t being spent on bread :) I think most of these funds would alternatively be invested, and returning above inflation on average.
From Investopedia, “inflation is the rate at which prices for goods and services rise”. So my understanding is that it is a broad measure of the purshasing power of money, and matters even if the money is not (directly) going towards buying food.
It seems to me like these amounts would be most useful if they were adjusted for inflation (alternatively, if you want to be fancy possibly even adjusted for an index of the wages of knowledge workers). As it is effective funding dispersed in the early years is being understated.
Are the grants adjusted for inflation? If not, doing it might be a good idea, such that the values are more comparable across years.
I’m not sure that inflation makes sense—this money isn’t being spent on bread :) I think most of these funds would alternatively be invested, and returning above inflation on average.From Investopedia, “inflation is the rate at which prices for goods and services rise”. So my understanding is that it is a broad measure of the purshasing power of money, and matters even if the money is not (directly) going towards buying food.
It seems to me like these amounts would be most useful if they were adjusted for inflation (alternatively, if you want to be fancy possibly even adjusted for an index of the wages of knowledge workers). As it is effective funding dispersed in the early years is being understated.
Yes, sorry, on reflection that seems totally reasonable