It's called inflation.
inflation
This is a definition of inflation. If the rise in prices is both rapid and very large, it is called hyperinflation.
It's called inflation. Get ready for a lot of it.
A sharp or sudden rise in prices resulting from an excessive expansion in paper money or bank credit is known as inflation. This phenomenon occurs when the supply of money outpaces the growth of goods and services in an economy, leading to decreased purchasing power. When too much money chases too few goods, prices increase rapidly, which can destabilize the economy if left unchecked. Central banks often intervene to manage inflation through monetary policy measures.
inflation
Inflation.
The situation set forth and described in the question is known as INFLATION.
what is different about interest rates, or price of credit, from other prices in the economy
The main difference between the general and selective credit control methods is that the former influence the cost and overall volume of credit granted by banks. They affect credit related to the whole economy whereas the selective controls affect the flow of credit to only specified sector of the economy, wherein speculative tendency and rising trend of prices, due to excessive bank credit, is noticed.
Yes, the tightening of credit and a sharp decrease in farm prices touched of the Panic of 1819.
The mass availability of credit in the 1920s encouraged excessive consumer spending and investment, leading to inflated asset prices and unsustainable levels of debt. When the stock market crashed in 1929, many individuals and businesses found themselves unable to repay loans, resulting in widespread defaults. This financial strain contributed to bank failures and a contraction in credit, exacerbating the economic downturn and leading to the Great Depression in the 1930s. Ultimately, the reliance on credit without adequate financial safeguards revealed vulnerabilities in the economy, triggering long-lasting repercussions.
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