Theory: Inflation in the wizard economy

[Steve]

No: HPFGUIDX 92890

--- In HPforGrownups at yahoogroups.com, "alshainofthenorth"
<alshainofthenorth at y...> wrote:
> 
> ....edited...
> 
> A discussion of the price of Harry's wand and the pairs of 
> Omnioculars he bought at the Quidditch world cup gave me a sudden 
> brainstorm. Surely a wand is worth more than a pair of Omnioculars, 
> people reasoned. Well, what do we call it in the Muggle world when 
> the same nominal amount of money buys less than it did three years 
> ago? Yup, *inflation*. 
> 
> ...edited...
> 
> Alshain 


bboy_mn:

Your analysis was actually pretty good, you started with a basic
premise and backed it up nicely with information, BUT...

Let's start with some perspective on wizard's money

29 Knuts = 1 Sickle
17 Sickles = 1 Galleon

Per JKR's interview-

1 Galleon = 5 Pounds Stirling

for ease of use-
1 Pound Stirling = $7.50

1 Knut = 1.5¢ US Cents ($.015)
1 Sickle = 44¢ US Cents ($.44)

One Pound per $7.50 yields an exchange rate of 1.5 which isn't real
accurate but it's easy math. Just convert Galleons to Pounds by
multiplying by 5, then multiply that by 1.5 to get Dollars.

One small problem is, we have no way to adjust the 1:5 G:£ exhange
rate. It's fixed by JKR's statement while the £:$ exchange rate
constantly fluctuates.

So, 

1 wand = G10 = £50 = $75

and the same for the Omnioculars (£50 or $75).

A fair price for basic muggle binoculars is about $50. For a pair that
has zoom, instant replay, slow motion, and closed caption, $75 doesn't
seem that unreasonable relative to $50 for a common pair.

True you may be able to get binoculars cheaper than $50, but not very
good ones, and TOP quality brand name muggle binocular would run
closer to $100.

So, let's look at the price of a few other things-

1 Bottle Butter Beer @ Hog's Head in OotP = 2 Sickles = $.88

1 New Quill = 15S + 5K = $6.675

1 Basic Fireworks Blaze Box (OoP) = G5 = $37.50

1 Deflagration Deluxe (OoP) = G20 = $150.00

Pre-orders for Skiving Snack Boxes about G26 = $195.00

1 Headless Hat (OoP) = G2 = $15.00

(Can anyone think of anything else that we know the price of?)

Nothing there seems that far out of a realistic price range.

$.88 for a bottled soft drink purchase in a pub? I pay $1.00 each for
the brand of Ginger Ale that I typically drink which I purchase at the
grocery store. 

Personally, I always thought G10 ($75) for Harry's wand seemed kind of
cheap, but on the other hand, it is just a stick of wood and a
feather. Note, in the real world, wizard wands run from $20 to $100.
http://www.thewandshop.com/phoenix_wands.htm
http://www.alivans.com/custom/list.asp?c=19271&pageid=6914


So, while I liked your analysis, I really don't see that much
inflation in the current wizard world. But, now that war has started,
everything becomes harder to get and more valuable, that combined with
economic uncertainty could very easily create inflation.

That's for the analysis.

Just a few thoughts.

bboy_mn