Unidad de Valor Constante
Imagine you have a shiny gold coin that you keep in your pocket. This coin can buy you a toy car or a candy today, but what if in a year, the price of the toy car and candy has gone up because the cost of production has increased? That means your gold coin won't be worth as much as it used to be.
That’s where the idea of unidad de valor constante (UVC) comes in. UVC is a way to make sure that the value of your gold coin (or any other kind of money) stays the same even as prices go up or down over time.
It works like this: if you have one UVC today, it will still be worth one UVC tomorrow or even a year from now because it's adjusted to keep up with inflation (which is the rising cost of goods). In other words, UVC ensures that you can buy the same amount of things with one UVC now as you can in the future.
Imagine you have a snack that costs 1 UVC today. In a few years, if the price of that snack goes up to 2 UVC, you'll still be able to buy it for 1 UVC because UVC keeps up with inflation. It's a way to make sure things that cost 1 UVC today will cost the same in the future.
UVC isn't a type of currency (like dollars or euros); it's a way to track the value of money over time so that you know how much something is really worth. It's like having a measuring tape for money that lets you compare prices over time. So, just like your gold coin, your UVC can buy you the same amount of goods today and in the future.
That’s where the idea of unidad de valor constante (UVC) comes in. UVC is a way to make sure that the value of your gold coin (or any other kind of money) stays the same even as prices go up or down over time.
It works like this: if you have one UVC today, it will still be worth one UVC tomorrow or even a year from now because it's adjusted to keep up with inflation (which is the rising cost of goods). In other words, UVC ensures that you can buy the same amount of things with one UVC now as you can in the future.
Imagine you have a snack that costs 1 UVC today. In a few years, if the price of that snack goes up to 2 UVC, you'll still be able to buy it for 1 UVC because UVC keeps up with inflation. It's a way to make sure things that cost 1 UVC today will cost the same in the future.
UVC isn't a type of currency (like dollars or euros); it's a way to track the value of money over time so that you know how much something is really worth. It's like having a measuring tape for money that lets you compare prices over time. So, just like your gold coin, your UVC can buy you the same amount of goods today and in the future.