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Friday, 30 January 2009

Some new financial terms you may need to learn

The FT has reported that Morgan Stanley have ventured to suggest that
hyperinflation is a possibility, although this depends on a number of
factors, including the willingness of governments to pump up the money
supply and run the printing presses. We shall not speculate on the
correctness of their analysis, but if we assume for the moment that they are
correct, here is some terminology that may be useful.

We are used to the terms million, billion and even trillion, but thereafter
we may be less familiar with the commonly used terms for large numbers. In
fact, the system used in scientific circles and widely adopted in America
and hence in world financial circles is quite simple once we realise that
the prefixes after one million are sort of Latin: bi-, tri-, quadri-,
quinti- etc.

Or each each name represents 10^(3*(n+1)), where n is the number usually represented by the prefix in the name.

Hence one billion (bi-: 2) = 10^(3*3) = 10^9

One quintillion (quinti-: 5) = 10^(3*6) = 10^18

This has been a public service announcement.

1 comment:

Not a sheep said...

and a very worrying one.