How inflation is hitting you in the pocket

Our money has been debased for decades. The blame lies with the advent of fiat money, says Dominic Frisby.

pound coins
(Image credit: © Getty Images)

Tom Haynes wrote an interesting piece in The Telegraph the other day to mark the 40th birthday of the pound coin. “The pound in your pocket is now worth just 30p”, ran the headline, followed by the subheading: “Some 40 years after the first pound coins were minted, their relevance is waning.” I’ll say!

But the pound has actually lost a lot more than 70% of its value, and the article’s own statistics demonstrate that. “The average house cost £27,386, compared to £290,000 today,” says Haynes. I make that a fall of more than 90%. A first-class stamp was 16p. Now it’s £1.10. That marks depreciation of over 85%.

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Dominic Frisby

Dominic Frisby (“mercurially witty” – the Spectator) is as far as we know the world’s only financial writer and comedian. He is the author of the popular newsletter the Flying Frisby and is MoneyWeek’s main commentator on gold, commodities, currencies and cryptocurrencies. He has also taken several of his shows to the Edinburgh Festival Fringe.

His books are Daylight Robbery - How Tax Changed our Past and Will Shape our Future; Bitcoin: the Future of Money? and Life After the State - Why We Don't Need Government

Dominic was educated at St Paul's School, Manchester University and the Webber-Douglas Academy Of Dramatic Art. You can follow him on X @dominicfrisby