Inflation

The worst case of hyperinflation in the 20th century took place in Hungary in 1946.

The Cola raises is linked to high inflation rate and the high cost of living.

Galloping Inflation

When the movement of price accelerates rapidly, running

inflation emerges. Running inflation may record more than 100

per cent rise in prices over a decade. Thus, when prices rise by

more than 10 per cent a year, running inflation occurs.

Economists have not described the range of running inflation.

But, we may saythat a double digit inflation of 10-20 per cent

per annum is a running inflation. If it exceeds that figure, it

may be called 'galloping' inflation.

According to Samuelson, when prices are rising at double or

triple digit rates of 20, 100 or 200 per cent a year, the situation is

described as 'galloping' inflation.

Indian economy has witnessed a sort of 'running' and 'galloping'

inflation to some extent (not exceeding 25 per cent per

annum) during the planning era, since the Second Plan period.

Argentina, Brazil and Israel, for instance, have experienced

inflation rates over 100 per cent in the eighties.

Galloping inflation is really a serious problem. It causes

economic distortions and disturbances.

Submitted by:

Sanchit Suneja

SSCBS

yes

$1. It's gold-plated, not gold.

The U.S. didn't strike any gold coins in 1972 but a lot of private companies took normal copper-nickel dollars, plated them, and sold them as "collectibles" at significant markups.

3.5%

The answer depends upon what you mean by "inflation adjusted annuities"?

Assuming that you mean an annuity where the annuity payment (the amount paid regularly, under the payout arrangement elected, to the contract owner) will be adjusted in accordance with changes in the Consumer Price Index and that "who" means "which insurance carriers", the answer is "almost nobody". Last time I looked, Vanguard sold an immediate annuity where payments would be adjusted UPWARDS in accordance with the CPI. And I recently learned that the Principal offers a SPIA where payments will increase by the CPI. I don't know of another carrier that offers such a contract. A number of carriers offer annuity payouts that will increase by a PREDETERMINED PERCENTAGE each year, but many do not.

The question is incomplete.

Depression

s vary among firms? support each theory with practical five examples

Follow this link to an inflation calculator provided by the Bureau of Labor Statistics, which will provide the current purchasing power of any dollar amount from any time in the past (since 1913): http://data.bls.gov/cgi-bin/cpicalc.pl

positive balance of trade.

MY DEAR according to economic survey of Pakistan its 23.8%

the name is stagflation. It is difficult to handle this situation. search for stagflation to know more...

When you ask a question in the form "Which of the following...", you must provide some options. We can't see your assignment paper.

It is due to the nature of economic policy. Normally inflation and unemployment are inversely related, so policy decisions can be made to cure one at the expense of the other (for instance, raising of interest rates lowers inflation but risks stifling business growth). During the period between 1964 and 1983, we experienced "stagflation" (high unemployment AND high inflation). So when we experience both at the same time, policy makers have their hands tied as to what to do. If they decide to try to get inflation lower, they risk making unemployment worse (and it's already bad) and if they try to get employment lower, they risk making inflation worse.

none - labour is the British spelling of the American word, labor, as is harbour, rumour, neighbour, honour and colour.

Real GDP is calculated as prices in the "base year" times quantities in the current year. You need to know about base year.

im not too sure if im correct but

injections exceeding withdrawals mean inflation increases as theres TOO MANY PEOPLE AND MONEY CHASING TOO FEW GOODS....this means that producers will increase the price of the good so that they will be able to bring demand to an equilibrium point...

because inflation has increased the monetary committee will increase interest rates thus causing unemployment to increase as producers will not be able to pay wages ......... or something like that

ONCE AGAIN IM NOT COMPLETELY SURE IF IM RITE

The law of one price suggests that identical goods selling in different countries should sell at the same price, and that exchange rates relate these identical values, leading to purchasing power parity theory, which suggests that changes in exchange rates over time must reflect relative changes in inflation between two countries. If purchasing power parity holds true, the forward rate (Sf) can be forecast from the current spot rate (S0) by multiplying the ratio of expected inflation rates ((1+ia)/ (1+ib)) in the two counties being considered. In formula form: Sf = S0 (1+ia)/ (1+ib). where "a" and "b" represents the two countries.

by Oyedeji Olufunso Oyeleke

can you tell me the answer

"Inflation" is defined as an increase in the overall level of prices

over an extended period of time. Or in other words Inflation occurs

when the supply of money far exceeds the supply of goods and services.

The functions of money are to serve as a medium of exchange, a unit of

account, and a store of value. Inflation mainly affects the ability of

money to serve as a store of value, since inflation erodes money's

purchasing power, making it less attractive as a store of value. Money

also isn't as useful as a unit of account when there's inflation,

because stores have to change prices more often and because people are

confused and inconvenienced by the changes in the value of money.

Any inflation affects this function of money and obliges us to make

the distinction between nominal and real prices, for example when

looking at GDP figures. Inflation often makes the financial

performance of companies and investments more difficult to judge. It

is easy to see an increase in nominal profit and judge that to be a

good result whereas, in fact, real profit has declined.

When changes in the CPI in the base month have a considerable effect

on twelve-month measured inflation, this is commonly referred

to as a base effect.

Base effects are therefore the contribution to

changes in the annual rate of measured inflation from abnormal

changes in the CPI in the base period.

lame

35 Pence GBP in 1973 had the purchasing power of about £2.83 GBP today.