Inflation spurs growth, at least according to the theory. Let us examine the theory in further detail. The theory goes something like this: Since savers realize the value of their money will erode, they spend more quickly thus stimulating the economy. If we believe tomorrow brings higher prices, we buy today. Basically, we spend before
The conventional marker for hyperinflation is 50% per month, which was first proposed in 1956 by Phillip Cagan, Professor of Economics at Columbia University. Below we review three other historical cases of hyperinflation. Hyperinflation is extreme or excessive inflation where price increases are rapid and out of control. Most central banks (such as the U.S.
Monetary reforms are not a new idea. In fact, there were quite a lot of such reforms already carried out in the history. So why it should interest us? Monetary reforms were historically used when national economies reached a state of no return – were highly idebted and there was very little left that governments
Though the stock market is on the rebound of late as more and more states reopen, hedge fund billionaire Ray Dalio has made it clear that he expects the ongoing coronavirus pandemic to leave behind an economic downturn that could be the worst since the Great Depression. “We’re not going to go back to normal”