Posted: 9 March, 2020

PIE at Lunchtime – Inflation RPI and the ‘Strappy Top’ Conundrum

General, Guests, News, PIE, PIE talk, Senior School, Sixth Form

On Thursday 12 March, We warmly welcome Mr Michael Hampden-Turner as our PIE at Lunchtime speaker.

Mr Hampden-Turner has spent 25 years in financial research and strategy working for RBS, Citigroup, HSBC and currently for HM Treasury.

Mr Hampden-Turner introduced the talk with a quick summary of what inflation actually is. The conversation then explored the reasons behind inflation, such as administration costs, tax, labour and more.

Mr Hampden-Turner also shared the interesting story about the Tulip ‘futures market’ in Holland. These markets enabled investors to buy tulips on credit, without paying for the tulips but being able to finance the purchase on for future sales. Obviously this led to too much money and too few goods.

Examples of extremely old and rare bank notes were circulated around the room for students to investigate. This included a note printed in Hungary in 1946 called the egymilliard B-pengo.
In modern usage it would be called a 1 billion trillion pengo note. The note was worth about £1, at the time it was the highest denomination banknote.

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