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This is a great website for solutions to inflation: []

What steps have been taken in the past to stop inflation?

Answer: Take money out of the system. Raise interest rates so the businesses will not take out loans and drop prices. But there is a lot of unemployment because the economic activity slows. Inflation is caused by prices being higher than goods. Solution: make unemployment, and pay workers less to slow economic growth. You have to make people believe that there is not going to be an inflation. If they think that there will be an inflation, they will make different choices and hoard goods, making the situation worse.

Hyperinflation is when the money is worth next to nnothing. Then people start to barter, which makes the economy collapse. Money makes thing efficient. When you spend money in other countries, the US has no control over any of the money that is outside the country.

Roman Inflation
 * 1) The inflation was caused by the need of more military forces. There was not enough money to support these forces, so taxes were raised. Taxes were increased and extra coins were minted. Since there were more coins and less silver, the value of the coins went down. This lead to higher prices and inflation.
 * 2) Another reason for the lack of silver was the fact that the wealthy were spending lots of gold and silver on luxury items outside the empire. This meant that there was less money going in than going out of the empire. When prices became higher and higher because of the decreasing value of the coins, people started to barter and trade to get the items they wanted. This meant that there were even less coins in circulation.
 * 3) People were also hoarding goods, because the prices kept getting higher. To make more silver, the merchants also hoarded the goods. They would only sell a small amount of an item at a time to make people bid very high prices for an item they usually got much cheaper.
 * 4) The Barbarians took lots of money when they attacked Roman towns. This, again, caused for less money to be in circulation.
 * 5) Some emperors taxed the senators and other powerful figures, to render them powerless. Now that the rich and powerful were no longer rich and powerful, the poor people of Rome had to pay bills of the state. This included the vast and expensive military. When the poorer people had less money because they were paying state bills, they had less to spend on goods.
 * 6) During the time of the inflation, a “100% silver” denarius was actually only 0.02% true silver
 * 7) Many of the luxury items that the wealthy were buying were made of gold and silver. This left less precious metal for the coins.

U.S. Inflation .
 * 1) For the past 81 years, the average inflation rate per month was about 3.38%. This means that the prices of many commonly used items have increased by 3.38% (i.e. a dozen eggs that was worth $5 in one month, would raise to about $5.17 the next month).
 * 2) The U.S. had a gradual inflation, which means that prices go up by a small percent each month. In Rome, there was a hyper inflation which means that prices went up extremely fast in short period of time, leaving people unprepared.
 * 3) With many common items including food and gas going up, the total cost of living is also expected to rise. This makes it hard for the unemployed.
 * 4) Now, the U.S. is experiencing a deflation. This is when the prices of goods and services go DOWN. This usually occurs when the supply of goods rises faster than the supply of money. It can also be caused when people are always looking for the lowest prices. They put off buying certain things hoping that the prices will get lower. When there are fewer purchase made, companies don’t make as much money. Then, they have to start lying off employees because they can’t pay the salaries. This makes unemployment rates to go up.
 * 5) The Great Depression was caused when inflation went up by about five percent, while the income of employees went up by less than three percent. This meant that people couldn’t afford to buy things because their salaries did not go up as much as prices in stores. One solution of the Great Depression was war. War creates jobs; jobs create income, income created spending. To get out of a bad inflation, you have make people spend more. If people start to spend more, merchants will get more money and lower prices. This all starts with more jobs.
 * 6) A solution to inflation is to stop making so much money. In Roman times, when you kept making more money, the value went down. The people of Rome need to spend more money INSIDE of the empire. This will make sure that there is more in circulation. If there is more money in circulation, you don’t have to make more. The new coins have less silver. If you don’t make any more coins, you can still have the correct amount of silver in the current coins. So, the Romans need to stop spending outside of the empire.
 * 7) Devaluation is another cause of inflation. Just like in Rome, our coins are made with less true silver, which caused the value to go down. A quarter made before 1964 is currently worth about $8. This is because they were made with 90% true silver. Current coins are only worth $0.25 because they are copper covered in nickel. Less silver= less value. This is the same as what happened in Rome.

Bibliography:

US Problems:

."Honest Money." //RonPaul.com//. N.p., 1998. Web. 6 Feb 2012. . . "United States Inflation Rate." //Trading Economics//. Trading Economics, 2012. Web. 6 Feb 2012. . Smith, Herman. "What is Real Inflation in 2011?." //us-debt-solutions-now.com//. N.p., 11/23/11. Web. 6 Feb 2012. [].

Rome Problems:

Gill, N.S.. "Economic Reasons for the Fall of Rome." //About.com Ancient/Classical History//. The New York Times Company, 2012. Web. 1 Feb 2012. .

"The fall of Ancient Rome." //History Learning Site//. historylearningsite.co.uk, 2012. Web. 1 Feb 2012. .

. "Fall of Ancient Rome." //Rome Info Your Travel Guide to Rome//. Rome Info, 2009. Web. 1 Feb 2012. .

Possible Solutions:

1. You also can't rely on fiat money. Try to make the gold standard possible for the masses too. Then the coins will be backed by true value. 2. Do not debase the coinage. The more coins to a pound, the less the coins are worth. This cause huge inflation. Try to stop introducing so many new coins. This is not going to stop the inflation. The new coins that are brought in will inflate just as the others had. 3. The government has to control the token coinage as well. If a city cannot pay the taxes, that city is simply minting more coins. This means that more coins are in circulation, causing the value to go down. 4. stop growing the army. With a huge army, you will have to make more coins to pay all of them. The wars and army was one of the greatest causes of the inflation. When the coins become almost worthless, the cost of paying the soldiers goes up drasticly. 5. SLOW THE ECONOMIC GROWTH! to slow the economic growth you have to shrink the army(might die though) and salaries, CONTROL the coinage, shrink the bureaucracy by making fewer but larger provinces.