Trey+L

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 * Inflation In Rome Facts**

silver in denarius was decreased from 95% in the time of Agustus to 5% in the middle of the third century

minted more coins which made prices rise

Roman citizenship was expanded to bring in more taxes

government raised taxes

People would hoard older, high silver content coins and pay their taxes in those with the least silver

since many people were joining the army it slowed the cirrulation of the coins

raised the pay of the soldiers by 50 percent, and to achieve this he doubled the inheritance taxes paid by Roman citizens.

gold in the aureus was decreasing

abandoned the denarius completely and tried to issue a new silver coin, called the argenteus

people were buying goods from forigen countries which means that people were sending out silver to foreign countries but that silver wasn't cirrculating back into Rome

when a civil war would break out to see who would become the next emperor they would recruit foriegn mercenaries which means that the commander would be paying the foreigners which would take their money and spend it somewhere else so wouldn't stay in Rome.


 * Inflation In The U.S**

in 2001 Ave inflation rate 2.83% US exports 19.2 US imports 102.3

in 2002 Ave inflation rate 1.59% US exports 22.2 US imports125.2

in 2003 Ave inflation rate 2.27% US exports 28.4 US imports152.4

in 2004 Ave inflation rate 2.68% US exports 34.7 US imports196.7

in 2005 Ave inflation rate 3.39% gas reached 3.06 US exports 41.8 US imports 243.5

in 2006 Ave inflation rate 3.24% gas reached 3.01 US exports 55.2 US imports287.8

in 2007 Ave inflation rate 2.85%gas reached 3.23 US exports 65.2 US imports321.5

in 2008 Ave inflation rate 3.85% gas reached 4.12 US exports 71.5 US imports337.8

in 2009 Ave inflation rate -0.34% gas reached 2.68 US exports 69.6 US imports296.4

in 2010 Ave inflation rate 1.64% gas reached 3.05 US exports 91.9 US imports364.9

U.S inports have increased from 125.2 billion dollars to 364.9 billon dollard in the last ten years

U.S inports have increased from 19.2 billion dollars to 91.9 billion dollars

It is the federaul reserve job to control inflation

In 2010 the dollars yield droped 3.85% to 2.41%

In 2009 yield rose from 2.15% to 3.28%.

in 2008 3.57% to 2.93%

The U.S is experiencing more of a deflation problem than an inflation problem

an example of hyperinflation is where a loaf of bread cost like $1200

one way people create inflation is when they think the inflation rate will go up so they go and buy the items now instead of later an example would be I think the inflation rate will go up so i will go buy a computer for $150 now instead of a year later because I think it will be $250


 * Questions**

1.How does trading with foreign countries affect how much money the U.S prints?

2.How does deflation and inflation intertwine(affect) each other?

3.Which is a worst problem deflation or inflation?

4.How is the U.S dealing with inflation and what are some action the U.S have already took to deal with inflation.


 * Cited Sources**

Peden, Joseph. "Inflation and the Fall of the Roman Empire." ludwig von Mises Institute. (2009): n. page. Web. 8 Feb. 2012. <>.Peden, Joseph. "Inflation and the Fall of the Roman Empire." ludwig von Mises Institute. (2009): n. page. Web. 8 Feb. 2012. <>.

"Current Inflation." inflation data. (2012): n. page. Web. 8 Feb. 2012. .

Waggoner, john. "Forget inflation: Is deflation the real threat? ." USA Today. (2012): n. page. Print. <>.


 * Expert Contact**

Hi Trey,

Please see my responses in red. Let me know if you have any questions.

1. How does inflation affect people's insurance? Can you give examples of how inflation affects people's insurance? The problem of inflation occurs in many forms. This is because a claim can occur many years after the policy has run out - and inflation puts up the claim amounts - the main example is asbestos claims in the US.

An other example is the effect of inflation on repair costs. Insurance companies usually 'index link' policies so the sum insured increases monthly with the durable prices index - but the premium is fixed for the year. In periods of high inflation the extra costs incurred at the end of the policy must be taken into account.

Most insurance policies are annual or less - and so the effects of inflation can be factored in each renewal date e.g. your motor insurance premium goes up partly because of increased personal injury claims and labor/ parts price increases during the year.

2. How does insurance affect the inflation problem in the U.S? Justify your answer. Since the late 1990’s, health care spending has increased at a faster rate of growth than has gross domestic product, inflation, and population. In the latest year data are available, total national spending on health care rose to $1.67 trillion, or $5,670 per person.

3. How do insurance companies deal with the inflation problem? Can you give examples of how USI deals with the inflation problem. In recent years, considerable attention has focused on aggregate health care spending increases. Emphasis has been given to identifying and examining the factors that have contributed to spending growth, and proposing policy solutions to reduce spending growth. Factors that contribute to spending growth encompass changes in health care utilization, population demographics, price inflation, and advances in medical technology

4. Do you use inflation in insurance? If yes, can you give examples of how you do? In the latest year for which data is available total national spending on health rose to $1.7 trillion, or $5,670 per person. By 2013, national health expenditures are projected to reach $3.4 trillion, or $10,709 per person. As a share of GDP, health spending is projected to reach 18.4 percent by 2013, up from its 2003 level of 15.3 percent.

**Picture for the Final Project**  