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Money has value when it is publicly assigned to it.

The time value of money is variable. The money in your wallet has a certain value. With the passage of time as a result of events and actions of the laws of economics, the value of money held can be much higher or much smaller than the present value.

This concept is widely used in the process of making investment decisions

The following factors affect the value of money over time:

macroeconomic:

inflation processes - they occur in most countries, even a small inflation rate of 1% or 2% means that the savings you have today, if you don't invest them, will decrease every yearchange in exchange rates - currency exchange between countries also affects the amount of money over time in relation to foreign currencies, e.g. 1000 PLN today is worth 248 Euro and tomorrow it can be worth 246 Euro or 250 Euro depending on how the exchange rate will change

Clear increases in inflation over the centuries have been associated with increased money supply (Phelps-Brown and Hopkins, 1956).

This can be seen in data collected since the 13th century in Great Britain. Such events occurred during the conquest of Scotland and Wales in the 13th century, great colonial gains at the turn of the 16th and 17th centuries, and during the gold rush in North America in the 18th century.

Events ruining the English (and British) economy - the Hundred Years War, the Two Roses War, the English Revolution, the Napoleonic Wars and the Spring of Nations - caused deflation. The value of money in those days was still quite natural. As the economy grew, there was more money and prices increased, and in hard times the amount of money decreased, so prices fell. The turning point, changing the nature of inflation, was the Great War. Its participants suspended the convertibility of money into ore (gold standard), for fear of being used by hostile countries. However, it was quite common to expect that after the war everything would return to normal.

The war was financed largely by inflationary policy. After the war, in the 1920s, attempts to return to the state before 1914 could be observed. However, this proved unrealistic, and one of the effects of these attempts was deflation, which in the next decade led to the great economic crisis in 1929 . After its completion, in the 1930s, countries around the world began to deviate from the gold standard. When money became fiat, governments could theoretically issue it without restrictions, and the phenomenon of inflation became an important problem for the developing economic sciences. An attempt to control inflation