Everett+A

= __FINAL PROJECT__ = = = media type="custom" key="12426574" **Questions: ** **Sources: **
 * 1) What is the __best__ way to combat inflation and is the US government doing it?
 * 2) Can inflation be a good thing and if it can how?
 * 3) Is deflation the only solution to inflation, and if not, what are the other solutions?

Gill, N.S.. "Fall of Rome-Economic Reasons." About. N.p., n.d. Web. 31 Jan 2012. .
 * Roman: **

Bartlett, Bruce. "How Excessive Government Killed Ancient Rome." Cato. Cato Institute, Fall 1994. Web. 31 Jan 2012. .

Peden, Joseph R.. "Rise and Fall of the Roman Empire."Mises Daily. Mises Institute, 07/10/2009. Web. 1 Feb 2012. . Woodley, Kyle. "7 Ways Inflation Will Hit Americans in 2012." Daily Finance. Investor Place, 31/01/2012. Web. 1 Feb 2012. .
 * Modern Day: **

Amadeo, Kimberly. "Control Inflation-What the Fed is Doing." About. About.com, 30/12/2009. Web. 1 Feb 2012. . Elmer, Vickie. "What makes an ideal crisis manager." //CNN Money//. FORTUNE, 13/6/2011. Web. 1 Feb 2012. . Sakurna, Paul. "Solyndra." //New York Times//. (2011): n. page. Web. 8 Feb. 2012. . = **Pictures:** =

//Austrian School Crest//. N.d. Photograph. Ludwig Von Mises InstituteWeb. 9 Feb 2012. <http://mises.org/etexts/austrian.asp>.

//United States Inflation Rate//. 2011. Chart. Sahil AlviWeb. 9 Feb 2012. <http://www.sahilalvi.com/Blog/>. //Silver Content of the Roman Denarius//. 2011. Chart. A Call to WingsWeb. 9 Feb 2012. <http://calltowings.blogspot.com/2011/12/greshams-purseii-of-ii.html>.

//The Great Fire of Rome//. 2011. Graphic. ArchangelclkWeb. 9 Feb 2012. <http://archangels-bloggy.blogspot.com/2011/02/roman-emperor-nero-antchrist.html>.

//Federal Reserve Seal//. 2011. Graphic. Drpinna.comWeb. 9 Feb 2012. <http://drpinna.com/fraud-and-the-fed-17805>.


 * <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;">Facts/Problems: **

<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;">Roman Times:
 * 1) <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;">Nero and other emperors debased the currency (changed the coin to an “I owe you” type of thing), which lowered the value of the coin.
 * 2) <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;">By 270 AD the amount of silver in a “100%” denarius was only .02% (They just dipped the coins in silver), which lowered the value of coins.
 * 3) <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;">Because of the decline of tax farmers the government didn’t get enough money. This caused even more taxation and inflation.
 * 4) <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;">People hoarded the older more valuable coins and paid their taxes with the newer less valuable coins, which lowered the tax revenue.
 * 5) <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;">Diocletian set minimum wages, which lowered business owner’s profits (led to lowered pay rates, which couldn’t happen because of minimum wage).
 * 6) <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;">He (Dio.) also set maximum prices, which made some things completely disappear from the market.
 * 7) <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;">Several emperors (Dio., Constan., etc.) created several new coins in an attempt to replace the denarii, but all of them failed and caused confusion.

<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;">Modern Day:
 * 1) <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;">The government created an artificial bubble in the housing market, which burst and caused the economic collapse (an extreme amount of inflation happened).
 * 2) <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;">Milk, Cereal, Beef, Coffee, Bread, Chicken, Fruit, Gas Prices, Plane Tickets, and Stamps are a few items whose prices will go up in 2012.
 * 3) <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;">Detroit, Lansing, and Flint have been appointed crisis managers that can completely take over a city’s control and institute laws to control the massive inflation problems there. The local businesses in the area are regulated much more and inflation could be an unwanted byproduct.
 * 4) <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;">The Obama Administration formed the “Super Congress” that can overrule any decision by congress and create new laws to help the problem.
 * 5) <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;">As gas prices and unemployment rates rise, the value of the dollar is continuously being lowered (inflation).
 * 6) <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;">The government uses the Federal Reserve to : <span style="background-color: #ffffff; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;">Raise and lower the Fed Funds rate (amount of money a bank can lend), Raise or lower the amount of reserve requirement <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;">banks <span style="background-color: #ffffff; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;"> need to keep on hand (the amount of money a bank always needs to have). Raise or lower the discount rate it charges to allow banks to borrow funds from the Fed's discount window (a discounted price of money being loaned to banks that are close to the reserve requirement). (Which supposedly helps everyone)
 * 7) <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;">The government issues bailouts to failing companies to try to boost sales and ultimately jump start the economy. This greatly affects the companies receiving the bailouts and any type of business that is selling/providing the same product/service. (This tactic still hasn’t worked very well)


 * Email to Erwin Erhardt (Professor of Economics at UC):**

Dear Mr. Erhardt, I am a Nagel 7th grade student working on an assignment. What we have to do is see if today's technology and tactics could save the Roman Empire and stop its downfall. I am researching inflation in Rome, which was one of the empire's main problems. You probably see how you come in this, questioning an economics professor could help. I'm going to need to ask you a few questions and would greatly appreciate your help.

Thank you very much for your cooperation and hope you answer some of the questions. You can contact me at everettanglim@student.foresthills.edu.
 * 1) What do you think the best way to combat inflation is and do you think that people in 300 A.D. could do it? (second part not necessary)
 * 2) In your opinion, what is the U.S. government's most successful inflation stopping tactic?
 * 3) Do you believe that inflation could be turned around into a good thing swiftly?

Sincerely, Everett **No Reply**


 * Email to Redmon Patrick (Clinical Economics Professor at Xavier)**

Dear Dr. Redmon, I am a seventh grade student at Nagel Middle School in Cincinnati, Ohio. As a project in Social Studies my class and I have been assigned problems of the Roman Empire and need to use modern day technology and tactics to solve these problems. I have been assigned inflation and have noticed your degree in economics. I have a few questions that would be nice to have answered by you. Thank you for your cooperation.

Thank you for reading the email. I hope you can answer these questions and get back to me. My email is everettanglim@student.foresthills.edu.
 * 1) Could problems with the welfare system directly relate to inflation problems?
 * 2) Could the welfare system indirectly relate to inflation?
 * 3) Does overpricing of healthcare services in any way relate to inflation?

Sincerely, Everett Anglim

**No Reply**
 * Email to Kimberly Amadeo (Economic Article Writer for About.com)**

Dear Ms. Amadeo, I am a 7th grade student at Nagel Middle School in Cincinnati, Ohio. In my Social Studies class we are working on the problems of the Roman Empire and how to solve them with today's technology and expertise. I am doing inflation and would like to better understand the subject before I come up with a solution. I noticed your article on the federal reserve and that you have written a book of the recession. I have a few questions that would be nice to have answered. Thank you.


 * 1) Does the Federal Reserve's actions have a direct impact on Inflation? If so is it bad or good?
 * 2) What do you believe the US government's best tactic to stop inflation is?
 * 3) Is deflation the only solution to inflation, and if not, what are the other solutions?
 * 4) Is deflation better or worse than inflation and why?

Thank you for reading this email and my questions. If you could answer any of these questions it would be greatly appreciated. You can contact me at everettanglim@student.foreshills.edu.

Sincerely, Everett Anglim


 * Kimberly Amadeo's Reply**

Hi Everett,

These are great questions. You will find the answers in the articles I've already written. The links to the articles are after each question.

1. Does the Federal Reserve's actions have a direct impact on Inflation? If so is it bad or good? @http://useconomy.about.com/od/inflationfaq/f/Control_Infla.htm

2. What do you believe the US government's best tactic to stop inflation is? Cut back on the debt and spending to allow the Fed more leeway with monetary policy.

@http://useconomy.about.com/od/fiscalpolicy/p/US_Debt.htm @http://useconomy.about.com/od/glossary/g/Monetary_policy.htm

3. Is deflation the only solution to inflation, and if not, what are the other solutions? The Fed has targeted a core inflation rate of 2%, which is healthy. Here's why: @http://useconomy.about.com/od/glossary/g/Inflation-Rate-Targeting.htm

4. Is deflation better or worse than inflation and why? @http://useconomy.about.com/od/pricing/f/Deflation.htm @http://useconomy.about.com/b/2009/07/15/deflation-inflation-deinflation.htm

Good luck!

Kimberly