The document discusses hyperinflation, defined as inflation over 50% per month. It provides examples of severe hyperinflation in countries like Germany in 1923, Hungary from 1945-1946 with monthly inflation peaking at 1.3 x 1016%, and Zimbabwe from 2004-2008 with a monthly rate of 79.6 billion% in November 2008. The causes of hyperinflation include increasing the money supply, currency devaluation, and loss of confidence in the economy. Effects are rising prices, consumption over investment, and international investors avoiding the country. Methods to control hyperinflation include high interest rates, fiscal measures like taxation, and preventing conditions that can trigger hyperinflation.
Hyperinflation and its effect on different world economiesDevanshDhruv1
What is Hyperinflation?
Causes of Hyperinflation.
Effects of Hyperinflation.
Examples of Economies that faced Hyperinflation.
Countries like Hungary, Zimbabwe, Venezuela.
Solutions of Hyperinflation.
Hyperinflation and its effect on different world economiesDevanshDhruv1
What is Hyperinflation?
Causes of Hyperinflation.
Effects of Hyperinflation.
Examples of Economies that faced Hyperinflation.
Countries like Hungary, Zimbabwe, Venezuela.
Solutions of Hyperinflation.
A currency war refers to a situation where a number of nations seek to deliberately depreciate the value of their domestic currencies in order to stimulate their economies. In this presentation we discuss the basic aspects, features of currency war, currency devaluation. We also cover the impact of currency war of affluent nations on Indian economy
The presentation summaries the hyperinflation in Zimbabwe, its causes, and possible remedies. The original presentation has a lot of animations which i don't think will work here.
This presentation is on inflation and major factors behind this. last 15 Years inflation rates as per wpi and cpi. Even we have entered about japan's stagnant economy.
Venezuela's crisis and economic conditionAbir Hasan
This topic was given to us for presentation by the teacher of Macroeconomics course (Bus 201). We talked about crisis in Venezuela and their sufferings. It was great opportunity to know about the economic condition of the country.
plz send me your feedback i am eagerly waiting for it at mkvi2013@gmail.com. This ppt is made by me can be used by you for preparing for your presentation at cluster level
A currency war refers to a situation where a number of nations seek to deliberately depreciate the value of their domestic currencies in order to stimulate their economies. In this presentation we discuss the basic aspects, features of currency war, currency devaluation. We also cover the impact of currency war of affluent nations on Indian economy
The presentation summaries the hyperinflation in Zimbabwe, its causes, and possible remedies. The original presentation has a lot of animations which i don't think will work here.
This presentation is on inflation and major factors behind this. last 15 Years inflation rates as per wpi and cpi. Even we have entered about japan's stagnant economy.
Venezuela's crisis and economic conditionAbir Hasan
This topic was given to us for presentation by the teacher of Macroeconomics course (Bus 201). We talked about crisis in Venezuela and their sufferings. It was great opportunity to know about the economic condition of the country.
plz send me your feedback i am eagerly waiting for it at mkvi2013@gmail.com. This ppt is made by me can be used by you for preparing for your presentation at cluster level
1. Definition
2. Variations of Inflation
3. Calculation of Inflation
4. Keynisian view of Inflation/Causes of Inflation
5. Effects of Inflation
6. Methods to Control Inflation
7. Is inflation good or bad?
8. Inflation and GDP
Global Investment Returns Yearbook 2012Credit Suisse
Published: 1/2012
The aftermath of the 2008 financial crisis seems to pose unprecedented new dilemmas: how inflationary is quantitative easing, how should investors balance short-term deflationary with potential long-term inflationary risks, how should currency exposure be steered? While current events may appear different from the past, there are nevertheless always lessons to be learned from what went before, especially when we look back across the diverse experience of multiple decades and many countries. With their analysis of data over 112 years of history and across 19 countries, Elroy Dimson, Paul Marsh and Mike Staunton from the London Business School provide important findings in this year’s Credit Suisse Global Investment Returns Yearbook 2012 in respect of the above questions.
In the third article, Paul McGinnie and Jonathan Wilmot from Credit Suisse Investment Banking show with more than a decade of history how the contrarian indicator they built – the Credit Suisse Global Risk Appetite Index – helps investors to time risk-on versus risk-off investment strategies.
- Download the Global Investment Returns Yearbook 2012 (PDF): http://bit.ly/1o3SItA
- Order the print version of the Global Investment Returns Yearbook 2012 http://bit.ly/1pbiWHB
Visit the Credit Suisse Research Institute website: http://bit.ly/18Cxa0p
The Great Depression - Presentation (Macroeconomics Perspective)Arjun Parekh
This brief presentation on 'The Great Depression' has been made from the point of view of understanding Macroeconomic factors that played an important role.
In today’s global economy, fears of inflation are front and center for many. This fear is driven by massive government stimulus in response to the COVID-19 pandemic.
However, many market participants nowadays haven’t experienced truly unhealthy levels of inflation and therefore aren’t prepared to protect themselves against it.
In order to understand where this fear originates from and how one can better protect themselves from unhealthy levels of inflation, it is paramount that market participants and everyday individuals understand the ins and outs of inflation.
In this report, we break down inflation, elaborate on its causes and effects, discuss how central banks manage it, explain what it means for society, and lend insight into how anyone can protect themselves against it.
3. Hyperinflation is
inflation that is very
high or "out of
control", a condition
in which prices
increase rapidly.
usually more than
50% a month.
4. History of Hyperinflation
In 1922, inflation in Austria reached 1426%, in
January 1923, the consumer price index rose by a
factor of 11836, with the highest banknote in
denominations of 500,000 krones.
• Germany went through its
worst inflation in 1923. In
December 1923 the
exchange rate was
4,200,000,000,000 Marks
to 1 US dollar. In 1923, the
rate of inflation hit 3.25 ×
106 percent per month
(prices double every two
5. Hungary went through the worst inflation ever
recorded between the end of 1945 and July 1946.
It is the most severe known incident of inflation
recorded, peaking at 1.3 × 1016 percent per
month (prices double every 15 hours).
The Republic of China went through the worst
inflation 1948–49. Peak Month and Rate of
Inflation: Apr. 5070%
6. Hyperinflation in
Zimbabwe was one of the
few instances that
resulted in the
abandonment of the local
currency.
Hyperinflation began
early in the 21st-
century,in 2004, reaching
624%.
At its Nov. 2008, peak
monthly rate was 79.6
billion percent, which is
equivalent to around
7× 10108 percent yearly
rate. At that rate, prices
were doubling every 24.7
8. Causes
High inflation must always be
preceded by major increases in
the supply of money.
Imbalance between supply and
demand for the specific currency.
The reduction of the value of the
paper money.
Increased borrowing in order to
pay of other debt.
9. The role of civil war, revolution, or deep
social/political unrest is the factor in many of the
hyperinflation.
The existence of weak govt. is another important
condition that triggers hyperinflation.
Loss of confidence in the country’s economy(the
first step into hyperinflation).
10. Effects
The prices of goods go higher,
especially the prices of
commodities.
Creates an environment for
consumption and spending,
but NOT investment and
saving.
International investors will not
invest in the country’s
economy (lacks FDI).
People prefer to keep their
wealth in non-monetary assets
or in a relatively stable foreign
currency.
13. Decrease in public
purchasing power.
Currency debasement
(which lowers the value of a
currency, and sometimes
cause a new currency to be
born.
People tend to barter
instead of using money as a
way of exchanging goods.
14. How it can be controlled
There are broadly two ways of controlling hyperinflation
in an economy:
I).Monetary Measures
The most important and commonly used method to
control inflation is monetary policy of the Central Bank.
Most central banks use high interest rates as the
traditional way to fight or prevent inflation.
Monetary measures used to control hyperinflation
include:
(i) bank rate policy
(ii) cash reserve ratio and
(iii) open market operations.
15. 2). Fiscal measures
Fiscal measures to control hyper inflation include
taxation, government expenditure and public
borrowings. The government can also take some
protectionist measures (such as banning the export
of essential items such as pulses, cereals and oils
to support the domestic consumption, encourage
imports by lowering duties on import items etc.).
16. Prevention
Increase the interest rate dramatically.
Cutting government spending and debt.
Increasing reserve rates for banks.
But each of these steps might have their own
side effects in the economy.