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Essay text:
In the United States, according to
the consumer price index, prices rose an average of 2.4 percent per year in the
1960s, 7.1 percent per year in the 1970s, 5.5 percent per year in the 1980s, and
3.0 percent in the 1990s. Even when the U.S inflation problem became severe
during the 1970s, it was nothing compared to the episodes of extraordinarily
high inflation, called hyperinflation, that other countries have experienced
from time to time.A classic example is Germany in 1923, when prices rose an
average of 500 percent per month.
In this chapter we examine the classical theory of the causes, effects, and social
costs of inflation...
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Common topics in this essay:
- Consequences of a High Rate of Economic Growth
- Estimate of the risk-free rate pf interest ("U.S. 10-year Treasury" bond rate
- Making Money From Inflation
- Money And Inflation
- Money Growth Rule
- There Must Be More Money
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