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Inflation
A persistent increase in the level of consumer prices or a persistent decline in the purchasing power of money, caused by an increase in available currency and credit beyond the proportion of available goods and services.
1,474 Questions
What is the difference between price level and the rate of inflation in an economy?
The price level is a measure of the average price in an economy and is measured at a point in time.. The rate of inflation is the rate of change of the price level over time. Strictly speaking, economists define inflation as a continued increase in the price level as opposed to a one time price level adjustment.
Effect of inflation on developing and developed country?
Inflation destroys it. The money made is lowered in value. Printing money causes this issue. If we print enough money the profit completely goes away and this your financial well being and development does also.
Why was there a inflation during the Revolutionary War?
During the revolution, the U.S. started printing lots of money to pay for the war, since the federal government couldn't levy taxes due to the laws laid out by the Articles of Confederation. Lots of available money leads to inflation.
How much would one dollar in 1931 be worth today?
If you mean $1.50, it was worth $1.50 in the 1930s.
If you mean how much it would be worth today allowing for inflation, that's a much more difficult question. The CPI has gone up at least 20- or 30-fold since then but it's very hard to compare prices since so much has changed. For example, some foods that were once comparatively cheap are now expensive, and vice versa. One measure would be that it bought about 7 or 8 gallons of gasoline, which would cost around $20 today. It would have paid for 30 bus rides in most cities, versus one today. At the post office it would have let you mail 50 letters, which would cost $20 today.
On the other hand you have to compare quality and technology, too. $1.50 would have purchased 3 or 4 78-rpm records each holding 2 songs, so you could try to match that to the cost of say 15 or 20 songs on a CD or 6 iTunes downloads. However, the 78s would last through about a hundred playings before wearing out, they broke really easily, couldn't be copied or put on a portable player, were mono and had a frequency response from around 100 to 6000 Hz, so the quality difference is far greater than the price difference.
CommentPostal rates and gasoline prices are two commonly cited examples of inflation, but their price behavior is so badly skewed by non-market influences that they should probably be excluded from any inflation analysis, IMHO.For instance, a first-class postage stamp in 1863 cost $.03. The same stamp in 1958 cost $.03. Today, the first-class stamp costs forty-some cents, but it's a number that inflates so often that no one can keep up with it, and even the US Postal Service has begun to issue "Forever" stamps, bought at a current rate, but honored through subsequent rate hikes. One might speculate that issuing "Forever" stamps is more cost-effective than printing and handling billions of one-cent "add-on" stamps. But it's hard to ignore the fact that the US Postal Service is so addicted to rate hikes that it has memorialized them in the form of "Forever" stamps.
As for gasoline, the market changed completely with the rise of OPEC. Until then, gas could be had at the pump in the US for a quarter a gallon. After, it's been a wild ride.
The main point is this: non-market influences have governed the rises and falls of these two prices, and many others.
In the case of the postage stamp, market influences don't even enter the arena. The US Postal Service is a branch of the US federal government, and thus is not examined for profitability. Like all government enterprises, it is expected to lose money, and does so with alacrity and dependability.
In the case of oil/gas prices, they have been artificially manipulated since the early 1970s, when the Middle Eastern oil-producing nations figured out that they had a virtual stranglehold on the rest of the world, and could charge practically any price they wanted for their oil. A barrel of crude that sold for pennies in 1965 now sells for $90.
If it shows any wear at all the value is about $6.00 just for the silver. All Franklin half dollars (1948-1963) are considered common.
What is 1 dollar in 1946 worth in 2008?
Go here - http://www.dollartimes.com/calculators/inflation.htm FYI - $11.60 today
How is inflation and employment levels related?
Inflation causes people to save on everything. This makes commerce to sell less. Selling less causes unemployment. Unemployment and low consumption cause recession. No inflation implies on high consumption which must be controlled as well, but is much better than inflation and recession.
After the financial crisis hit, the pound devalued relative to the euro. The UK imports a lot. That seems to have kept inflation in the system. Recent VAT increases - notably on fuel - may be pushing the inflation rate up now.
What is the relationship between production and cost?
The relationship between production and cost in any manufacturing process varies based on volume produced and whether any part of the manufacturing process is outsourced or performed by subcontractors. Additionally, production and cost ratios vary based on the amount of automation involved in production and the amount of human oversight and involvement required.
Why did farmers favored inflation?
there was a decrease in the buying power of the dollar, brought about by too much money in circulation
it will shift up, the slope will remain the same
What is the value of an 1876 trade dollar?
Check on the back to see if there's a small mint mark letter. Numismedia lists the following approximate retail values as of 02/2010:
No mint mark (Philadelphia):
Very worn condition - $90
Moderately worn - $144
Slightly worn - $180
Almost no wear - $371
Uncirculated - $990 to $60,630 depending on quality
"CC" mint mark (Carson City):
Very worn condition - $210
Moderately worn - $330
Slightly worn - $420
Almost no wear - $1,448
Uncirculated - $5,370 to $70,630
"S" mint mark (San Francisco):
Very worn condition - $84
Moderately worn - $144
Slightly worn - $168
Almost no wear - $350
Uncirculated - $1,020 to $26,060
What is the value of a 1879 Liberty dollar?
The coin is likely a 1879 Morgan dollar, no US dollar coin is a "Liberty dollar". In general $25.00-$35.00, but it also depends on the condition of the coin and if it has any mintmarks. Look at it again and post new question with more info.
Mintmarks are on the reverse above the letters DO in dollar.
What is the value of a 1976 silver dollar?
The Mint produced 1976-dated Bicentennial Eisenhower dollars for two years (1975-1976) and did not make any 1975-dated dollars. Therefore the mintage for the 1976 coins is very high. In circulated condition, your coin is worth $1.10 to $1.25 -- uncirculated are generally worth $1.50 to $2.00 Another one that's worth a little more if certified MS-65 by a major grading service. Then a coin from Philadelphia lists for $10 and Denver $7. San Francisco minted a copper-nickel proof version that lists for $2 and 40% silver versions that list for $13 in MS-65 and $5 in proof.
It's only worth face value.
What is the cumulative inflation rate in US since 1960?
Check out http://www.j-bradford-delong.net/multimedia/Inflation.html. Remember, it's cumulative.
Three primary categories of financial performance indicators?
The consumer price index, unemployment rate and pay rate. All are good indicators.
Josh Harmatz
Voyage Financial Group
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The first question can be answered by performance measurement. Management will then have to hand far more useful information than it would otherwise have in order to answer the other three questions. By finding out what has actually been happening, senior management can determine with considerable certainty which direction the company is going in and, if all is going well, continue with the good work. Or, if the performance measurements indicate that there are difficulties on the horizon, management can then lightly effect a touch on the tiller or even alter course altogether with plenty of time to spare.
Advantages of inflation accounting?
An advantage of inflation accounting, is that it can correct problems with inflation. The negative part about inflation accounting is that it is not fair value accounting.
What is the value of a 1920 Morgan dollar?
What country and what design? The U.S. did not issue circulating dollar coins in 1983. Is it a commemorative coin or maybe a bullion piece?
Your best bet is to post a new question with that information, so it shows up in the "needs answers" list.
How does inflation affects debtors and creditors?
The debtors are gainers during inflation, while the creditors are losers. The reason this happens is because, during inflation, the value of money reduces greatly. The implications of which are that a rupee in the month of August is worth much less than what it was worth back in March.
This means that a person can buy fewer goods per rupee in the month of august, than what he could in the month of March. In terms of the debtor, he is essentially paying back a smaller amount (in real terms) even though the amount he owed to the creditor remained the same.
As far as the creditor is concerned, the value of the money that he receives from his debtors is worth much less than what it was when he lent it to them. (Implying that his purchasing power will be reduced when they repay him)
Does the purchasing power of money decrease with inflation?
Inflation destroys the purchasing power of a paper fiat currency such as the dollar. In practical terms this means that when inflation is high the same number of dollars today will buy a smaller amount of goods or services tomorrow.
Decrease. Inflation is when more dollar bills are printed. When you have more of something, the value always decreases per each of the something.
