inflation

=Definitions=

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.

Deflation - To counteract inflation in a country's economy, as by reducing the amount of money in circulation.

Hyper-inflation- The term "hyperinflation" refers to a very rapid, very large increase in the price level. Measurement problems will be too minor to notice on this scale. There is no strict formal definition for the term, but cases of hyperinflation tend to be expressed in terms of multiples rather than percentages.

Examples of Hyperinflation
It was in 1920 after World War I when Germany demanded many reparations so there was an incrise in the money supply. country did not have good control over the money flow. money to then exchange it for goods but to print money you need money so the money looses value. goverment had to borrow money from the bank causin the hyperinflation hyperinflation going on right now
 * Germany - This country expirience one of the worst inflations ever.
 * 1985 Bolivia - The biggest hyperinflation in Latin America
 * Argentina- This hyperinflation was caused because the banks in the
 * Peru - Country was in debt so the goverment started to print lots of
 * 1993 Brazil - Imaging your rent doubled every 10 weeks!!
 * 1993 Ukraine - After the collapse of the soviet union the

Stagflation - A period in which inflation occurs without a corresponding increase in production, a combination of words //stagnation (no activity)// and //inflation.// This happened in the United States in 1970 during an oil cisis

CPI (Consumer prize index) - is an index number measuring the average price of consumer goods and services purchased by households. It is one of several price indices calculated by national statistical agencies. The percent change in the CPI is a measure of inflation. The CPI can be used to index (i.e., adjust for the effects of inflation) wages, salaries, pensions, or regulated or contracted prices. The CPI is, along with the population census and the National Income and Product Accounts, one of the most closely watched national economic statistics.

Prices over time

[|Fed (FIRSTFED FIN CP)]