StudentShare solutions
Triangle menu

Factors that Lead to Hyperinflations - Essay Example

Not dowloaded yet

Extract of sample
Factors that Lead to Hyperinflations

To provide an empirical verification of hyperinflation phenomenon, a more focused study on the ravaging hyperinflation and its impacts on Zimbabwe are attempted in section 4. Some of the course correction that a country such as Zimbabwe requires to embark on to arrest its hyperinflation is presented in section 5, before section 6 concludes this essay.
A number of economists have attempted to define inflation, in their own terminology. For professor Crowther, inflation is marked by declining value of money, and conversely the rising level of prices (197). Pigou observed that inflation occurs when money income expands more than proportionately to income earning activity (439). In general, inflation is associated with a state of abnormal increase in the quantity of money. Inflation is linked to the issue of too much currency in the economy (Hawtrey 60). For Coulborn, inflation is a monetary phenomenon where "too much money chases too few goods" (356). According to Keynes, inflation is caused by an excess of effective demand over supply (296). For Friedman, inflation is a process of steady and sustained increase in prices. Inflation, thus, is a monetary phenomenon characterized by high prices, and conversely falling values of money (17). ...Show more

Summary

The general price level captured by inflation rate is an important macroeconomic variable which presents the degree of economic resilience in a country. Hyperinflation is the extreme form of inflation with rapid increase in the general level of prices. Episode of hyperinflation has pervasive implications for any economy as it jeopardizes the macroeconomic fundamentals in a substantive way…
Author : jeanne56
Factors that Lead to Hyperinflations essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Factors that Lead to Hyperinflations"
with a personal 20% discount.
Grab the best paper

Related Essays

Why is successful change management difficult to achieve What factors would be most likely to lead to success
Why is successful change management difficult to achieve? What factors would be most likely to lead to success? The biggest hurdle in the way of successful change management is organizational personnel. “Change management entails thoughtful planning and sensitive implementation, and above all, consultation with, and involvement of, the people affected by the changes” (Chapman, 2012).
4 pages (1000 words) Essay
What Were The Factors That Lead The Victory Of The Union What Changes After 1862 Affected The War's End
General Robert E. Lee is credited with drafting a farewell letter to his soldiers on 10th April 1865 following his surrender to General Grant at Appomattox (McPherson & Hogue 12). In this regard, he is noted for stating that his Northern Virginia army was compelled to concede defeat following the overwhelming resources and numbers of the Union.
9 pages (2250 words) Essay
Lead Poisoning and Screening
Lead can cause harm to everyone, but the prevalence of exposure is higher for poor black children. Lead is an environmental hazard and paint is as a common source of exposure, especially in old residential units. Children are a vulnerable population because of their particular behavior, and the inadequate measures after adult work exposure.
1 pages (250 words) Essay
Can environmental factors acting on organisms lead to inherited changes in phenotype in descendant
Thus, it is important to understand and study the role of environmental factors in altering this genomic structure of an organism to actually see if these environmental factors lead to inherited changes. To study the role of these environmental factors, the factors must be identified, classified and justified.
7 pages (1750 words) Essay
An investigation into key success factors that lead to efficient export managing and marketing planningThe case: Exporting of Artisan Sheep Cheese from FYROM
The over riding aim of this case study is to evaluate and judge whether there would exist a ‘triple win situation’ where the producers, the farmers and the states own agro-dairy farming is given a boost by a deeper penetration of products into the U.S
6 pages (1500 words) Essay
What Factors lead to hyperinflations and what can be done to eliminate them
Hyperinflation is an inflationary circle, which increases in a cumulative way and always moves far from the equilibrium. There is sufficient debate regarding the actual causes of hyperinflation. However, a somewhat
7 pages (1750 words) Essay
What factors would lead to a rise in the cost of credit in an economy, and in what circumstances
Thus, the cost associated with not taking the opportunity of a cash discount may turn out to be significant. This is used to determine the cost of credit
4 pages (1000 words) Essay
LEAD ASSIGNMENT
Race has been considered as a just social construction for over the past few centuries. However, recent social studies have indicated that there is nothing real or absolute about social construction, just like there is nothing real or absolute about objects examined by physic s (Andreasen, 1999).
2 pages (500 words) Essay
Factors
It is possible to determine three important factors, which determine information technologies competitive value. These factors are applicable for all the industries. The first essential factor is the ability of information technologies to change the structure of the
1 pages (250 words) Essay
Lead writing
ismark Police Chief Andrew Haney made startling revelations about the proposed changes in police force as a response to 15-percent cutback including reducing patrol personnel, shifting paper work to non-uniformed cleric personnel, and stopping the FBI special training
1 pages (250 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT