Inflation

Inflation at its core is a monetary problem. It is simply too much money chasing too few goods. The father of this theory is Milton Friedman (see link below).
Rapidly rising production costs

None of the Eisenhower dollar coins (1971-1978) made for general circulation have any silver or are worth more than face value. Only Proof and collectors coins with "S mintmarks sold from the US Mint contain any silver, and that's just 40%.

NOTE: Because no Ike dollars were included in the 1971 & 1972 Uncirculated Mint sets sold from the US Mint, typical Mint State coins from 1971 & 1972 do have values of $2.00 to $8.00 depending on the grade and mintmark.

4.5 million dollars in 1962 was worth about $35.3 million in 2015.

One of the biggest example that comes to my mind for examples of infaltion is minimum wage. Way back when, back in the day, minimum wage was, like, 25 cents. And people could live off of that. They could buy their food clothes and everything else. Now because of inflation, food and clothes along with everything else is more expensive and minimum wage has been increased to $5.25 or something close to that?

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Inflation is the enemy of the economy. Over time, inflation decreases the real value of money, that is, your purchasing power. Inflation doesn't have any purpose, it just exist as part of our monetary system.

War in general causes inflation from rapid expansion of money and credit. However, part of the inflation in America was due to the military's almost unchecked expenses for food and supplies.

inflation is both good and bad.. however, if compare with deflation, inflation is less evil.
why?? consider these..
-deflation decrease the national income of the community and pauperize society as a whole.
-deflation increase the level of unemployment.
-it is easier to control inflation but hard to recover from deflation.
-mild inflation may stimulate economic growth.

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The average hourly wage in 1960 ranged from $2.00 to $2.50 per hour. The average hourly wage in 2014 ranges from $13.89 to $31.10 per hour.

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None of the Eisenhower dollar coins (1971-1978) made for general circulation have any silver or are worth more than face value. Only Proof and collectors coins with "S mintmarks sold from the US Mint contain any silver, and that's just 40%.

NOTE: Because no Ike dollars were included in the 1971 & 1972 Uncirculated Mint sets sold from the US Mint, typical Mint State coins from 1971 & 1972 do have values of $2.00 to $8.00 depending on the grade and mintmark.

A person who borrows money for 30 years at a fixed rate in order to buy a home is the best example. Inflation has the effect of making the value of the equal monthly mortgage payments smaller. At the same time inflation causes the value of the home to increase. Consider, for instance, someone who borrowed money 25 years ago to buy a home in which they are still living. The monthly payments will seem very small indeed compared to the value of the home.

in the inflation situation government should careful about the expenditure. Government should exercise monetary policy . it will help to implement investment.

imran ali, student ,p.u ,bangladesh

About $600 according to this site: http://www.dollartimes.com/calculators/inflation.htm

Inflation and unemployment

Simply put, Inflation is the result of anything or phenomena that causes the Money Supply in an economy to exceed the Actual Output level at a particular time... It is this concept that laid the foundation for the lay definition of Inflation being, 'more money chasing fewer goods.'

Inflation has been brought about the weakening of the kenya shilling versus the American dollar an issue that has made the cost of living too high leading to escalating prices of commodities.

If aggregate planned expenditure exceed real GDP, firms sell more than they planned to sell and end up with inventories being too low. vice versa if aggregate planned expenditure is less than real GDP, firms sell lessthan they planned to sell and end up with unplanned inventories.

It was worth 5 cents, the same as today, but that amount bought considerably more at the time.

It's difficult to make a specific comparison because goods and services are so different now than they were 150 years ago, but a very rough guess extrapolating from 20th-century inflation figures indicates that a nickel in the late 1800s would buy at least what $1.50 to $2.00 buys today.

Primarily this happens because of increase in prices.

Nominal GDP= GDP using current prices.

Real GDP= GDP that takes prices changes into account.

Let me give a very simple example, let's say:

In year 1, the country produced 10 computers for 10 dollars each. So GDP for year 1= $100

In year 2, the country only produced 9 computers for 15 dollars each. So GDP for year 2 = $135 (9x15)

In year 2,the nominal GDP has increased from $100 to $135. However, we measure real GDP using a base year, in this case year 1, so we use the price of year 1 to find the real GDP for year 2.

Using prices of year 1 we have: 9 computers x $10 each = $90 of real GDP.

Finally, you see that even nominal GDP for year 2 was $135, the real GDP was $90.

expenditure money paid out; an amount spent expenditure the act of spending money for goods or services expenditure the act of consuming something

So many were struck, if it shows any wear the value is for the silver, about $11.00.

Due to the Treaty of Versailles, Germany had to pay reparations to France, Belgium and Britain (£6.6 billion). The reparations were due to start in 1921. French and Belgium troops invaded the Ruhr in response to the German Government failure to pay the reparations they owed. Germans workers were then forces to go on strike in the Ruhr but continued to get paid. The German Government printed more money to pay the German workers and to pay the reparations they owed the other countries. Then the workers on strike got more money that they could buy things from the shop. As they spent more money in shops they shop keepers put their prices up. The German Government carried on printing money so the shopkeepers raised their prices again. Then prices were inflating do fast that it was known as hyperinflation. By November 1923 a loaf of bread cost around 20 million marks.