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Inflation results from an increase in the amount of circulating currency beyond the needs of trade; an oversupply of currency is created, and, in accordance with the law of supply and demand, the value of money decreases. This is because excess demand means that aggregate demand is growing faster then the capacity of an economy to supply.
What else can I help you with?
What was the inflation rate after the great depression?
We were on the gold standard then. No fiat currencyhttp://inflationdata.com/inflation/images/charts/Annual_Inflation/inflation_Cumulative.htmI don't think there was much inflation after the depression. During the depression there was deflation. The economy recovered slowly so there was no spike in inflation.
What was inflation back in the 1900s?
Inflation was the same thing back then as it is now. Inflation rates were and are different in different countries, so the amount of inflation in each country is always different, depending on the solidity of the local currency. In Britain the inflation rate in 1900 was 4.5%. In the USA it was 16.9% but then fell to -2.4 the next year. Inflation rates in the US changed greatly from year to year and were often double-digit (but sometimes that was double-digit deflation)
How much would 4 pence be worth in 1960?
In 1960, 4 pence would be worth approximately 4 pence in nominal terms, as that was its face value. However, when adjusted for inflation, its purchasing power would be equivalent to a higher amount today. According to historical inflation rates, 4 pence in 1960 would be roughly equivalent to about 10 to 15 pence in today's currency, depending on the specific inflation measurement used.
What problem cause Congress to stop issuing paper money?
Inflation caused Congress to stop issuing paper money.
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.
What is the birth name of Anthony Hawtrey?
Anthony Hawtrey's birth name is Anthony John Hawtrey.
What is the birth name of Kay Hawtrey?
Kay Hawtrey's birth name is Katharine Mary Craven Hawtrey.
When was Henry Hawtrey born?
Henry Hawtrey was born in 1882.
When did Henry Hawtrey die?
Henry Hawtrey died in 1961.
What is pure monetary theory of business cycle?
It is propounded by hawtrey an economist,acc to him business cycles are nothing but succesive phases of inflation and deflation.money supply affects the business cycle.
What has the author Kim Hawtrey written?
Kim Hawtrey has written: 'Christianity'
How tall is Jonathan Hawtrey Clark?
Jonathan Hawtrey Clark is 6'.
When was Edward Craven Hawtrey born?
Edward Craven Hawtrey was born in 1789.
When did Edward Craven Hawtrey die?
Edward Craven Hawtrey died in 1862.
When was John Hawtrey born?
John Hawtrey was born on 1850-07-19.
When did John Hawtrey die?
John Hawtrey died on 1925-08-17.
When was Ralph George Hawtrey born?
Ralph George Hawtrey was born in 1879.
