Chapter 7: Relative Heaven

Footnote: Inflation Factors

To convert an amount of money spent in a given year to the equivalent amount at the Y2K value of the £, multiply the amount in that given year by the Inflation factor for that year in the table below. The table is followed by a graph comparing inflation as observed with inflation as predicted by the 10√2 algorithm.

YearObserved10√2Error
196611·0637783562600011·31371105263280−0·2499326963728
196710·6862428160900010·556065600745600·1301772153444
196810·418665732790009·849157402805930·5695083299841
19699·844639311710009·189588736393850·6550505753162
19709·401327223890008·574189414416120·8271378094739
19718·712988724550008·000001547744410·7129871768056
19728·014682112060007·464265328254500·5504167838055
19737·442276422760006·964405763932770·4778706588272
19746·721757794840006·498020302293070·2237374925469
19755·651690729480006·06286728261638−0·4111765531364
19764·521696177520005·65685516150951−1·1351589839895
19773·927199524780005·27803245999596−1·3508329352160
19783·499852949820004·92457838382012−1·4247254340001
19793·229712858920004·59479407188166−1·3650812129617
19802·756079484920004·28709443073614−1·5310149458161
19812·393443282380004·00000051591478−1·6065572335348
19822·136634587760003·73213242344447−1·5954978356845
19832·027844046070003·48220265740141−1·4543586113314
19841·925162584520003·24900994162000−1·3238473571000
19851·840483776170003·03143344581302−1·1909496696430
19861·742699821330002·82842739835132−1·0857275770213
19871·679680442630002·63901605980956−0·9593356171796
19881·619515514420002·46228903311865−0·8427735186987
19891·516760559780002·29739688778320−0·7806363280032
19901·408241030010002·14354707713212−0·7353060471221
19911·287900432900002·00000012897869−0·7120996960787
19921·232849180530001·86606609138085−0·6332169108509
19931·201846166270001·74110121641822−0·5392550501482
19941·178984703170001·62450486604674−0·4455201628767
19951·145880676340001·51571662515894−0·3698359488189
19961·109989739760001·41421360797394−0·3042238682139
19971·083550343270001·31950794481057−0·2359576015406
19981·045619892800001·23114443716362−0·1855245443636
19991·017632974170001·14869836981279−0·1310653956428
20001·000000000000001·000000000000000·0000000000000

Key To Column Headings

Year = Calendar year from 01 January to 31 December.
Observed = Inflation Multiplier as computed from observed Inflation Rates.
10√2 = Inflation Multiplier as given by the 10√2 algorithm.
Error = Error in the 10√2 algorithm's figure.

Calculating Inflation Rates

I originally based my inflation corrections on the 10√2 algorithm. This is based on the premise that the £UK has approximately halved in value every decade. This is equivalent to multiplying a price in one year by 10√2 (approx 1·07177346944809) to get what the price would be equivalent to in the following year. This yields only approximate figures for inflation. Nevertheless, it gives a far more accurate picture of reality than do uncorrected figures.

This graph compares observed inflation (blue line) with inflation as predicted by the 10√2 algorithm (red line). The horizontal axis is the year. The vertical axis is what you have to multiply a price in a given year by to get the equivalent in £Y2K. I surmise that the rate of inflation to which the £UK naturally gravi­tates is determined by complex dynamical phenomena involving:

  1. the size of the £-based UK economy relative to the $-based global economy, and

  2. the proportional coupling the UK economy has with the global economy.


I think this would naturally follow a geometric curve which, at the moment, is some­where close to the 10√2 curve shown in the graph. The true curve is almost certainly chaotic. Government interference with interest rates simply perturbs inflation slightly away from the natural curve, storing up fiscal tension which will sooner or later cause inflation to spring back the other way until equilibrium is restored. What such interference by government actually achieves is economic suffering among the least fortunate members of society.


Parent Document | ©Jul 1999 Robert John Morton