> When converted to the value of one US dollar in 2020, goods and services that cost one dollar in 1700 would cost just over 63 dollars in 2020, this means that one dollar in 1700 was worth approximately 63 times more than it is today. This data can be used to calculate how much goods and services from the years shown would cost today, by multiplying the price from then by the number shown in the graph. For example, an item that cost 50 dollars in 1970 would theoretically cost 335.5 US dollars in 2020 (50 x 6.71 = 335.5), although it is important to remember that the prices of individual goods and services inflate at different rates than currency, therefore this graph must only be used as a guide.
Yes, I read that. That explains how to use the graph, but not how they arrived at the numbers on the graph. What methodology did they use to compare prices for goods in U.S. Dollars in 1913 with prices for goods in Spanish Dollars (or pounds sterling, or whatever) in 1635 to come up with an index?
This is one of the things I dislike about statista.com. By putting their sources behind a paywall, they create a bunch of graphs that people can throw around the internet, but hide the context necessary to properly interpret them. The misinformation potential is huge.
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