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The Federal Reserve maintains a tight control on the money supply. This is because over circulation of money of the production of too much money can and will lead to inflation.
To demonstrate this we can look at Germany as an example. To pay off the reparations to other countries after World War II they simply printed more money. However, this back-fired when inflation took a steep upturn, millions of percentage points above what it was originally. It cost millions of German marks to buy just a loaf of bread.
This is the reason why The Federal Reserve keep such close tabs on the money supply, because if not inflation in the United States could increase beyond exponentially, and could get out of control.
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∙ 14y ago
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what currency is least affected by inflation?
Inflation is endemic in a capitalistic society. Different economies (currencies) are affected differently and over time there is no such thing as a safe currency.
How demand-side inflation has caused persistent inflation in the US in recent decades?
Demand side inflation that is partial increase in the price of some goods have Caused a sharp increase in the price of goods over the decades is because there is under production of goods and a large volume of money is in circulation.
What is the purpose of inflation reflex?
To prevent over inflation of the lungs.
What is the expected inflation over the next 5 years?
the expected inflation over the next 5 years is sex.
What is todays inflation rate?
In some countries the current inflation rate is over 100%, in other countries the current inflation rate is just over 3%.
what currency is least affected by inflation?
Inflation is endemic in a capitalistic society. Different economies (currencies) are affected differently and over time there is no such thing as a safe currency.
How did the articles of confederation handle inflation?
It never really spoke of the actual issue of inflation, but it did allow the states AND the central government to print money. This caused confusion and a high inflation since there were over 20 forms of currency circulating the U.S.
Which has authority over the printing of currency?
The printing and distribution of currency is the responsibility of a central bank. There is a different central bank for each currency. For example, the European Central Bank is responsible for the Euro (€), ensuring enough currency is printed, but not too much to cause inflation.
How demand-side inflation has caused persistent inflation in the US in recent decades?
Demand side inflation that is partial increase in the price of some goods have Caused a sharp increase in the price of goods over the decades is because there is under production of goods and a large volume of money is in circulation.
What is Inflation in financials?
A sustained, rapid increase in prices, as measured by some broad index over months or years, and mirrored in the correspondingly decreasing purchasing power of the currency.
What is the purpose of inflation reflex?
To prevent over inflation of the lungs.
What is the expected inflation over the next 5 years?
the expected inflation over the next 5 years is sex.
When was the one bill in circulation or in use?
The one-dollar bill has been in circulation in the United States since 1862. It has undergone several design changes over the years, but it has remained a staple of American currency.
Which continent guilders is in?
The Guilder (Guilders in the plural) was the currency used in the Netherlands (a country in Europe which includes the state of Holland) until the country changed over to the Euro, a currency common to 17 countries in Europe. The Euro was brought in to circulation on January 1, 2002.
What is todays inflation rate?
In some countries the current inflation rate is over 100%, in other countries the current inflation rate is just over 3%.
What is the unit of currency in Zimbabwe?
The Zimbabwean Dollar, although they have recently started using the US Dollar, since the inflation rates in Zimbabwe reached over a million percent due to the country's collapsed economy.
What are the inflation trends over the past fifty years?
B/c inflation happens
