The Effects Of Hyperinflation On The Economy

What if everyone in the U.S. had an A+ grade and a 4.0 GPA? Grade Inflation is a serious matter that teachers, parents, administrators, and school board members all around the nation think and argue about. Grade inflation is when “…teachers [are] paying a higher and higher price for the same product from students.”(Hunt, preface XV) The argument about grade inflation is very recent, starting around the late 20th century. “I found that grade inflation, while waning beginning in the mid-1970s, resurfaced in the mid-1980s.” (Stuart, 2) While grade inflation is rising each year, people are trying to make solutions for it. There are many other solutions to lower the A+ grade and 4.0 GPA that people already tried to do or the solutions that are just

Inflation doubled in 2007 and reached a peak at 28% in 2008.The fiscal make up 4-5% GDP and the trade deficit accounted for 20% GDP in which approximately $US17.5 billion dollars. The influence of high fuel combine with food prices and high domestic demand lead to high inflation. The high price of fuel in Vietnam illustrates global fuel prices and the high domestic demand of country importing fuel. Furthermore, the increase in global food prices affect detrimental to the high inflation in Vietnam.(Figure 2)

1. What is inflation? Inflation is an increase in prices for goods and services (What is Inflation?).

Issue: In Venezuela, the United Socialist Party (PSUV) has been in the power 18 years first with Chavez and them with Maduro, both elected by democratic elections. Now the country is divided into two significant groups Chavistas, people who support socialism and the actual president, and opposition, people anti-government and believe the corruption of the actual president. With this, the country is immersed in extreme violence, constants violations of humans rights and alarm power corruption. Additionally, some problems that the dictatorship produces like protests, the end of commercial relations with other countries, and the decreasing economy. The abuse of power leading to incrust the violations of humans right is the significant issue that Venezuela has to face today. This has an extended history that began in 1999, with the victory of Chavez in the name of socialism, but the break in the government started when Maduro raises in power and with the end of relations with the United States, who was the principal oil buyer. As well, the counting falling oil prices had decreased the Venezuela’s economy and limited the public inversion that the government used to do. With bad relations and an affected economy poverty, violence and discomfort with the government began. The corrupt power and constant violation of human rights are affecting in significant ways the country, particularly in the investment that the government

When is the last time we experienced deflation (prices actually dropped- you will have to go back a few decades)?

A solution to the problem could be stabilizing the currency. Currently, inflation is so exorbitantly high, that the black market ends up accounting for much of Venezuelan profit, which obviously is detriment to the economy. Therefore, it is suggested that Venezuela should let their currency float, which will substantially decrease the inflation rate. In terms of political solutions, it is important for the opposition parties to persevere to ensure that people like Maduro do not maintain power. Until Venezuela stabilizes, which is not predicted to happen until the 2020's, it is crucial for countries like Canada to help Venezuelan

The whole Venezuela country is dependent on their oil sales. That oil is their only income. Unless your the government or shop owners you're on the streets selling drugs to make money. For instances one of the articles told me that the president nephews were arrested for selling cocaine and was caught doing drugs. The craziest thing that surprised me was that I was reading an article saying Venezuela has too much money but not enough cash. This means that one they have the money just aren't printing it fast enough, many people wait outside of the ATM for hours just to get some cash to either get out of the country or to get some food for their family. But then again the management on the oil was horrible so then again they're losing money because their not making their mind up on how to manage

An alarming fact is that that US debt clock ran out of digits and we need a new one to add more digits. Economists Hamilton states our actual debt is closer to 701 trillion since we are not counting unfunded liability; social security, Medicare, Etc. Our economy needs growth, but it is only at 2%. We are paying interest instead of going to growth in the economy. The facts about our economy are that unemployment is down, but wages are not growing enough. Inflation is stable at under 2%, and interest rates are low. Since the 1940s the economy is generally in a deficient. In order to help a slow economy, the government uses fiscal policy to counter. A big issue to me was the cost of health and social security and how this is such a big part of

Imagine that after a lifelong of hard work and saving, you find that your lifesavings will not buy more than one cup of coffee. For a majority of the middle class living in Germany during the early 1920’s this was precisely their experience. Of course, not all suffered during this period of hyperinflation. Those who owed money encouraged their government’s expansionary monetary policies, knowing the resulting inflation would effectively cancel their debt. In fact, it was the Reich itself who had the most to gain from inflation, for it was the biggest debtor of them all.

Food, transport cost, gasoline and home energy are some of the products that increased in cost due to the oil dilemma. Another cause is the reliance on credit as a means of financing one’s life. Many people have increasingly been addicted on credit cards and other credit facilities causing a strain of the financial capabilities of a person. The application of mortgages and loans increased sharply in the past decade and with many people not meeting their monthly payments, interest rates rose up and people were are less able to pay the periodical amounts required of them. The final cause that will be highlighted is the falling dollar value. This has the effect of reducing the purchasing value of many citizens. Many homeowners lost money in the form of inflation due to the increasing devaluation of the dollar. There are many other numerous reasons given for the crisis all of which worked together to escalate the problem all over the country and also to some countries elsewhere in the world.

Now it must be mentioned that Maduro, instead of changing tack upon the death of Chavez, doubled-down on the latter’s policies and, in many cases, initiated economic policies that have further exasperated the crisis. As a result of having depleting government reserves, Maduro slashed imports including basic good like groceries and medical supplies – this was done in order to avoid having to default on foreign debt. Moreover, Maduro also made the grave mistake of responding to the impending crisis by printing money, which has caused inflation to skyrocket and exasperated the situation even further by making basic goods unaffordable. These policies coupled together have led to food shortages which have even led to food riots. While the economic policies of Chavez created the current crisis, those of Maduro has made the crisis far worse. The two men, quite simply, personified economic populism, relying on “the creation of a material base for the public’s support and the distribution of favors to constituents,” all whilst paying little heed to financial constraints (Cordova Cazar and Lopez-Bermudez 2009,

Venezuela is currently facing the worst economic crisis in history. According to the International Monetary Fund, it has negative growth of -8%, the worst in the world and the worst inflation rate (482%). The current unemployment rate is 17% though this figure is expected to climb towards 30%. Venezuela is a country that is reported to have the worlds largest oil supply, a commodity that has a changing price based on supply and demand. Their ability to sell oil was a primary source of revenue for the government. Exporting oil was reported to be around 96 percent of Venezuela's total exports according to the World Bank. In 2014 the

In addition, in the decade leading to 1994, the government saw an increasing expenditure for various projects in the country. The result was an increased reduction in the funds of the government. Another more important factor was that the country experienced hyperinflation from 1985 through 1993. This period was also characterized by significant increases in debt loads of the financial sector, as well as the low oil prices that also contributed to the weakening of the Mexican economy (Mathur, 18). One would argue that the Mexican

Like many Latin American countries, Nicaragua is a socialist country and hence, functions with a deficit budget. Deficit, if remained uncontrolled, has the potential to induce inflation in an economy. As in August, 2015, the inflation rate recorded in its economy was 2.70%. However, with its average inflation rate being 9.35% in the period of 1993-2015, it had achieved a highest rate of inflation in September 1993 at 23.99%. (Banco Central de Nicaragua estimated)

There are different influences that cause inflation such as energy, food, commodities, and other goods and services. The entire economy is affected by rise of the cost of living. It also affects the cost of operating a business, borrowing money, mortgages, corporate and government bond yields, and every other aspect of the economy. There are several advantages of inflation in the economy. Some include moderate rates of inflation which allows prices to adjust. This is considered a sign of a healthy economy. With economic growth available we usually get a generous amount of inflation. Also moderate inflation rate reduces the actual value of debt. If there is a reduction, the real value of debt increase leads to a squeeze on usuable income.