Inflation rate This is an indicator reflecting the violation of the law of monetary circulation, which is expressed in the excess of accessible money in the economy compared to the real needs of them.
Since the transition of the global economy to the system of floating exchange rates inflation rate In fact, it became a barometer of the effectiveness of the state-term strategy.
Inflation is a process that causes depreciation of money, the loss of their purchasing powerAs a result of this, the prices of goods and services grow. The inflation rate gives an idea of \u200b\u200bthe average value of such price changes, is calculated relative to the last period (more often per year) and is expressed as a percentage.
Middle inflation on global
Modern inflation and its roots
The inflation rate may vary by type depending on the form of manifestation, from the growth rates and from the factors causing it (more about). The inflationary process inevitably leads to certain, affecting the general economic development of the state, such consequences may be negative, so to prevent crisis situations The competent policy of the monetary authorities, which is expressed in the methods.
Modern man No need to explain what inflation is. This real disaster for the third world countries, when due unstable economy In the state, your money is depreciated. The highest inflation in the world was in Zimbabwe in 2009. It amounted to 231 million% per year, and unofficially 6.5 quincitarnigintillion. This country won the title "bottom standard" in the economy, but I think it did not make it easier for its citizens. For comparison, the percentage of inflation in Russia is about 9% per year.
Robert Mugabe, head of Zimbabwe (the president with the longest reign in the world), as he believed, having come to power as a result of a military coup in 1999, did not come up with anything clearer, how to start the forced expropriation of land in the white population (at that time they managed 70 % of all lands). The persecution, the absence of opposition and the monstrous dictatorship led to the fact that Europeans began to leave the country, throwing the established business.
On today, only 1% of the total population remained, and the redistribution of land led to a decline of agriculture and an incredible increase in prices. Almost for several years industrial production It was reduced by 3 times, and unemployment rose to 80%. In a short time from the most developed country In the African continent, Zimbabwe has turned into a poor importer of all the necessary food. And for many years, only humanitarian aid remained the main food supplier for people.
The government all this time continued to print not reinforced with a commodity, which led to even greater drop. Since December 2007 to 2009, the Nominal Notever rose from thousands to millions, billions and billions of bills. You can understand the degree of high inflation in the world in this example. If a roll of toilet paper standing 100 thousand dollars Zimbabwe is divided into portion pieces, or the same bill is exchanged for the smallest 5 dollar bills, it turns out that the use of non-destination will be 278 times cheaper.
In 2009, a denomination was carried out and 10 zeros were removed, but it did not stop the fall. And only when the ban on the use of world stable currency and the US dollar began at the head of the country, the situation was gradually improving. In 2015, the situation with inflation in Zimbabwe was much better than in the same Ukraine. And in 2014, even some GDP increase was observed.
World inflation
What will be inflation in the next ten years? This issue today is the most incomprehensible for the global economic community.
While the investors are focused on the "compass", the government enjoys a special "calendar".
While we are in the zone "Spring" - in the growth stage of world savings and growth of the public debt.
As the past 20 years grew the attitude of accumulated deposits in the world to world GDPShowing on the next diagram.
We see that over the past two decades, cash savings increased from 60% of GDP to 100%. Sooner or later, the trend of growth of accumulations will change to the opposite.
At this moment will grow sharply consumer demand. If you do nothing, then the "autumn" will come. There will be strong inflation. "What sowed, then go." Printed money - got a sharp increase in prices.
If everything is done on time - carefully remove the "extra" money from the economy at the time of increasing demand, then we will fall into the happiness zone - "Summer". Will the State Dolg will fall against the background of minor inflation and the decent level of profits from companies. "Spring passed, the summer has come, thank you for this!"
But if you start twisting the nuts too early, sharply reducing the state deficiency, without waiting for an increase in consumer spending, "winter" will begin - not only snow, but also the profits of companies will begin. We will get depression.
In general, the governments are not easy task. "In Russia, excellent agriculture - but there are four very serious problems. This is spring, summer, autumn and winter. "
To withdraw money from the economy, the state has two main tools: increase taxes and reducing government spending.
Taxes increase dangerous - you can lose competitiveness.
In our time there is a war of two worlds. On the one hand, these are transnational corporations, such as Microsoft, Procter & Gamble, General Electric or IBM, and on the other, the government.
The state represents the interests of socially unsecured strata of society, which make up most voters. Naturally the desire of the government to establish high taxes of the corporation and their highly paid employees, and the money to distribute the poor. But if corporations face high taxes, they immediately find the refuge in other, more supple resources.
And this is very unpleasant, as today, in contrast to what was 50 years ago, all scientific thought focused on large corporations. State scientific institutions are little engaged in serious research. So if there is no international companies, then no and scientific developments. Enough to look at modern Russia. We complain that science has died. And how many international companies in our country are scientific research? Zero. Hence the result.
It turns out, the country should either charge low taxes, increasing public debt, or have high taxes, while ignoring scientific research. But the latter is fraught with defeat in the next war. And since the ruin is always better than the lost war, governments usually leave low taxes. At the same time, money on maintaining the living standards of ordinary citizens is lending on the market. And it turns out that first states give major corporations to earn, and then they themselves take money from their owners. Such a vicious circle.
Reducing government spending is also a painful procedure, always causing a storm protest.
But it is still necessary to choose between increasing taxes and reduce costs. After all, to extinguish the potential growth in demand with standard measures, due to lifting banking ratesToday it is impossible. The reason is too big debts of governments today. Height interest rates will lead to an increase in the cost of their maintenance, which is hardly permissible.
What governments do to remove money from the economy, but so that no one has suffered? I like the World Tax. As soon as consumers spend more than they earn, it automatically increases. Spend less - decreases. How to enter it? And he actually already exists. Price for oil. Manufacturers can be given $ 100 per barrel - they will be happy. All that from above will be global tax. Manipulating them, you can keep the system in equilibrium for a long time. Once there is world profit and world inflation, the global tax suggests itself.
In the meantime, each state is struggling with potential inflation with its unique methods, the situation remains unpredictable.
Nevertheless, we believe that in the next few years there will be no strong increase in prices in the world. Reserves will save him - great unemployment, immigration, accumulated warehouse reserves, incomplete loading of equipment. In addition, as usual, prices will decline due to technical progress.
What groups of goods will affect reserves and new technologies with increasing demand, shown in the table below.
Inflation is very simple: prices for goods and services in your country are growing, because Money loses its cost. The cause of this economic "trouble", the leading economy to the collapse, today can be anything: wars, diseases, coups, cataclysms, politician errors (the most common cause), etc. You can explain the causes of inflation and so. The country drops the level of production and exports, respectively, the state earns less or nothing at all. , the currency of the state, and it is very, more and less interested in someone as a business partner, and it begins to grame its resources (gold and foreign exchange reserve), if anyone is. Accordingly, there is a difficult time for the people of this country, and he goes for the products to the store not with "", as before, and already, if there are those of the people. Which countries have survived the most powerful, "galloping" inflation?
1 Zimbabwe (2000-2009)
"Parable in the Languages" of all economists and bankers of modernity is to Zimbabwe. This predominantly agricultural country grown and exported tobacco, cotton, tea and sugar cane. In 2000, Zimbabwe's official authorities began the illegal confiscation of land in European farmers in order to give it to the use of local "businessmen", most of their civil war veterans of the 70s. As a result, production and exports almost completely stopped. The country suffered huge losses, because Foreign investors simply ceased to invest in the economy of this country and introduced numerous sanctions and trade embargo. For 2008, inflation in Zimbabwe amounted to 231,000,000% per year! Those. Prices doubled every 1.5 hours !!! All these years, the authorities did nothing, except for the new bills with a large number of noas. In July 2008, three chicken eggs, 100 billion Zimbabvian dollars were worth 100 billion in the store. In 2009, the president of the country (who, actually, and brewed this porridge) "descended", and the country refused its own currency in favor of the US dollar. The situation corrected a little, and the land, which was forcibly selected from farmers, and empty.
2 Hungary (1945-1946)
The devastated World War II, Hungary remained without industries and as a "Hitler's Posternaya" fell into an economic dependence on the USSR. By paying huge reparations to participating countries, Hungary became bankrupt with huge debts and devastation in the country. Inflation did not have to wait long. At the time of its start in 1945 big Covera There was ten-thousand Penga (Currency of Hungary to Forinta). After a couple of months, a bill was published at 10 million "Penga", a little later - 100 million, and then 1 billion at that time inflation reached 400% per day - prices doubled every 15 hours! Covers of 1 trillion, 1 quadrillion and 1 sextillion appeared ... National Bank of Hungary, may continue to continue the search for the largest number, but in August 1946 everything ended with the introduction of a new currency - Forint.
3 Greece (1944)
In 1941, Germany, together with Italian troops, occupied Greece. Before the Greeks, the Italians attack successfully beat. Forcing Greece to pay a huge amount of "occupation costs", Germany paralyzed all the country's economy. Agriculture, the main artery of the economy, and foreign trade fully sued. He began hunger. Back in 1943, the largest bill was 25,000 drachms, and after a year there was bills of denominations in 100 billion drachms. Prices doubled every 28 hours. The population survived only thanks to the barter and the natural exchange. Only due to the competent actions of the Greek authorities, the country's economy got out of the "Debt Pit". It happened in 7 long years.
4 Yugoslavia (1992-1994)
After the collapse of the USSR began to break down and Yugoslavia. The process was actively supported by the West, and the negative result did not make himself wait long. Serbia appeared, Croatia and, actually, Yugoslavia itself. The civil war began, and the UN introduced all possible sanctions and embargo against Yugoslavia. Manufacturing and trade, even within the country, almost stopped. Prices grew every 34 hours, and the government began to print money ... With the largest bills of 1992 in 5,000 Yugoslavia dinars, it reached the nominal 500 billion dinars. The economy has won finally, despite the visible commercials of the government. Alive, only the German brand introduced into the appeal in 1994.
After the defeat in the First World War, Germany also experienced all the "charms" of poverty. By paying huge reparations to the winners, the authorities still struck the rise in prices for some time, but unsuccessfully. Every 49 hours people saw new price tags, and every month with surprise looked at new bills larger nominal. The largest bill was 100 trillion brands, which really cost less than $ 25. In November 1923, a new currency was introduced - "Rentate Mark". She saved the economy at that time, which later became one of the strongest in the world.
6 France (1795-1796)
The French Revolution (1789-1799) occurred at a time when France's debt reached 4 billion livres! The colossal amount was formed mainly due to the Board of the most wasteful king in history - Louis XV. The main means of struggle with such debts, the revolutionary government elected the nationalization of church lands to bond loan - of course, with subsequent sale. In the "Revolutionary Gust" printed bonds as much as the land in France never happened. At the time of the peak of inflation, prices grew every 5-10 days, and a pair of boots, once worth the 200 paper livra, raised the price in the 20,000. Saved the situation of the coin - Frank. The authorities publicly burned on the Vandom Square all the paper bills (about 1 billion livres) and all machines for their production. Starting in the very Cable exchange of "paper" on "Metal", by the end of 1797 the French made franc sustainable currency for many years.
7 Peru (1984-1990)
In the distant past, the Great Empire Inca, the Republic of Peru already in the twentieth century has learned the cons of economic progress. Due to problems in production and foreign trade Peru's currency - "Salt" - in the beginning rapidly cheap. In 1984, the most large bill In 50 thousand salts turned into 500 thousand. Power spent monetary reform and introduced a new currency - "Inti". But this course without reanimation of production and trade relations is nothing. Covers in 1 thousand Inters by 1990 became a bill of 5 million of the same long-suffering int. In 1991, by many reforms managed to stabilize the situation and at that time the "new salt" was equal to 1 billion salts of the 1984 sample.
8 Ukraine (1993-1995)
In the post-Soviet space, one of the worst inflation survived Ukraine. Within 2 years, inflation reached 1400% per month. The reasons are the same as in other cases - the fall in production and export profits. The largest bills after the declaration of independence was 1000 coupons. By 1995, it was already 1 million coupons. Not inventing the bike, the National Bank is withdrawing coupons from circulation and introduces hryvnia, changing at the rate of 1: 100,000. At that time, it was approximately 20 American cents.
At that time, amazing stories happened, people taking loans for the purchase of a car or housing, while they quenched these loans from the monthly salary.
9 Nicaragua (1986-1991)
After the revolution of 1979, the new authorities Nicaragua nationalized most of the economy. Given the huge external debts of the country, it caused economic crisis and inflation. The largest bills of 1 thousand Cordob in less than a year became bill of 500 thousand. In 1988, the old Cordoba was replaced by a new one. This, of course, did not help. In mid-1990, the Golden Cordoba was introduced, equal to 5 million new Cordob. It turned out that 1 Golden Cordoba was equal to 5 billion Cordob, released until 1987. This "cordobreavion" slowed a little, and later it was almost stopped when the agricultural sector of the economy was able to resume.
10 Krain (Serbian) (1993)
Krayna is an unrecognized country, in 1998 attached to Croatia. But still independent, she has undergone economic declinebecause unable to establish nor own productionnor trading with neighbors. Just for the year 50,000 dinars turned 50 billion! Gradually, with the battles and pregenists, Krai was returned to Croatia, however, a lot of Serbs left ...
Inflation as a result of the illiteracy of the authorities can be easily defeated, but provided that these most power are actually looking at things. Taking the money from other countries, the country can live without trouble, but very long. Only configuring the production and by simulating the trade in its own goods, along the way, accumulating resources, you can not only not be afraid of this phenomenon, but also successfully help others. Of course, with benefits for myself. Such market relationswho came up with a man.
Inflation is very simple: prices for goods and services in your country are growing, because Money loses its cost. The cause of this economic "trouble", the leading economy to the collapse, today can be anything: wars, diseases, coups, cataclysms, politician errors (the most common cause), etc. You can explain the causes of inflation and so. The country drops the level of production and exports, respectively, the state earns less or nothing at all. Banks, the currency of the state, and it is very, more and less interested in someone as a business partner, and it begins to gradually waste its resources (gold and foreign exchange reserve), if any. Accordingly, there is a difficult time for the people of this country, and he goes for the products to the store not with the "trifle", as before, and already with paper bills, if any people have. Which countries have survived the most powerful, "galloping" inflation?
1. Zimbabwe (2000-2009)
"Parable in the Languages" of all economists and bankers of modernity is to Zimbabwe. This predominantly agricultural country grown and exported tobacco, cotton, tea and sugar cane. In 2000, Zimbabwe's official authorities began the illegal confiscation of land in European farmers in order to give it to the use of local "businessmen", most of their civil war veterans of the 70s. As a result, production and exports almost completely stopped. The country suffered huge losses, because Foreign investors simply ceased to invest in the economy of this country and introduced numerous sanctions and trade embargo. For 2008, inflation in Zimbabwe amounted to 231,000,000% per year! Those. Prices doubled every 1.5 hours !!! All these years, the authorities did nothing, except for the new bills with a large number of noas. In July 2008, three chicken eggs, 100 billion Zimbabvian dollars were worth 100 billion in the store. In 2009, the president of the country (who, actually, and brewed this porridge) "descended", and the country refused its own currency in favor of the US dollar. The situation corrected a little, and the land, which was forcibly selected from farmers, and empty.
2. Hungary (1945-1946)
The devastated World War II, Hungary remained without industries and as a "Hitler's Posternaya" fell into an economic dependence on the USSR. By paying huge reparations to participating countries, Hungary became bankrupt with huge debts and devastation in the country. Inflation did not have to wait long. At the time of its start in 1945, the biggest couple in the country had ten-thousand Penga (Currency of Hungary to Forinta). After a couple of months, a bill was published at 10 million "Penga", a little later - 100 million, and then 1 billion at that time inflation reached 400% per day - prices doubled every 15 hours! Covers of 1 trillion, 1 quadrillion and 1 sextillion appeared ... National Bank of Hungary, may continue to continue the search for the largest number, but in August 1946 everything ended with the introduction of a new currency - Forint.
3. Greece (1944)
In 1941, Germany, together with Italian troops, occupied Greece. Before the Greeks, the Italians attack successfully beat. Forcing Greece to pay a huge amount of "occupation costs", Germany paralyzed all the country's economy. Agriculture, the main artery of the economy, and foreign trade fully sued. He began hunger. Back in 1943, the largest bill was 25,000 drachms, and after a year there was bills of denominations in 100 billion drachms. Prices doubled every 28 hours. The population survived only thanks to the barter and the natural exchange. Only due to the competent actions of the Greek authorities, the country's economy got out of the "Debt Pit". It happened in 7 long years.
4. Yugoslavia (1992-1994)
After the collapse of the USSR began to break down and Yugoslavia. The process was actively supported by the West, and the negative result did not make himself wait long. Serbia appeared, Croatia and, actually, Yugoslavia itself. The civil war began, and the UN introduced all possible sanctions and embargo against Yugoslavia. Manufacturing and trade, even within the country, almost stopped. Prices grew every 34 hours, and the government began to print money ... With the largest bills of 1992 in 5,000 Yugoslavia dinars, it reached the nominal 500 billion dinars. The economy has won finally, despite the visible commercials of the government. Alive, only the German brand introduced into the appeal in 1994.
5. Germany (1922-1923)
After the defeat in the First World War, Germany also experienced all the "charms" of poverty. By paying huge reparations to the winners, the authorities still struck the rise in prices for some time, but unsuccessfully. Every 49 o'clock people saw new price tags, and every month with surprise looked at the new bills of even more denominations. The largest bill was 100 trillion brands, which really cost less than $ 25. In November 1923, a new currency was introduced - "Rentate Mark". She saved the economy at that time, which later became one of the strongest in the world.
6. France (1795-1796)
The French Revolution (1789-1799) occurred at a time when France's debt reached 4 billion livres! The colossal amount was formed mainly due to the Board of the most wasteful king in history - Louis XV. The main means of struggle with such debts, the revolutionary government elected the nationalization of church lands to bond loan - of course, with subsequent sale. In the "Revolutionary Gust" printed bonds as much as the land in France never happened. At the time of the peak of inflation, prices grew every 5-10 days, and a pair of boots, once worth the 200 paper livra, raised the price in the 20,000. Saved the situation of the coin - Frank. The authorities publicly burned on the Vandom Square all the paper bills (about 1 billion livres) and all machines for their production. Starting in the very Cable exchange of "paper" on "Metal", by the end of 1797 the French made franc sustainable currency for many years.
7. Peru (1984-1990)
In the distant past, the Great Empire Inca, the Republic of Peru already in the twentieth century has learned the cons of economic progress. Because of the problems in the production and foreign trade, the currency Peru - "Salt" - in the beginning rapidly cheap. In 1984, the largest bills of 50 thousand salts turned into 500 thousand. The authorities conducted a monetary reform and introduced a new currency - "Inti". But this course without reanimation of production and trade relations is nothing. Covers in 1 thousand Inters by 1990 became a bill of 5 million of the same long-suffering int. In 1991, by many reforms managed to stabilize the situation and at that time the "new salt" was equal to 1 billion salts of the 1984 sample.
8. Ukraine (1993-1995)
In the post-Soviet space, one of the worst inflation survived Ukraine. Within 2 years, inflation reached 1400% per month. The reasons are the same as in other cases - the fall in production and export profits. The largest bills after the declaration of independence was 1000 coupons. By 1995, it was already 1 million coupons. Not inventing the bike, the National Bank is withdrawing coupons from circulation and introduces hryvnia, changing at the rate of 1: 100,000. At that time, it was approximately 20 American cents.
At that time, amazing stories happened, people taking loans for the purchase of a car or housing, while they quenched these loans from the monthly salary.
9. Nicaragua (1986-1991)
After the revolution of 1979, the new authorities Nicaragua nationalized most of the economy. Given the huge external debts of the country, it caused an economic crisis and inflation. The largest bills of 1 thousand Cordob in less than a year became bill of 500 thousand. In 1988, the old Cordoba was replaced by a new one. This, of course, did not help. In mid-1990, the Golden Cordoba was introduced, equal to 5 million new Cordob. It turned out that 1 Golden Cordoba was equal to 5 billion Cordob, released until 1987. This "cordobreavion" slowed a little, and later it was almost stopped when the agricultural sector of the economy was able to resume.
10. Krain (Serbian) (1993)
Krayna is an unrecognized country, in 1998 attached to Croatia. But still independent, it was subjected to economic decline, because I could not establish nor own production, no trading with neighbors. Just for the year 50,000 dinars turned 50 billion! Gradually, with the battles and pregenists, Krai was returned to Croatia, however, a lot of Serbs left ...
Inflation as a result of the illiteracy of the authorities can be easily defeated, but provided that these most power are actually looking at things. Taking the money from other countries, the country can live without trouble, but very long. Only configuring the production and by simulating the trade in its own goods, along the way, accumulating resources, you can not only not be afraid of this phenomenon, but also successfully help others. Of course, with benefits for myself. These are the market relations that man invented.
