In this essay I looked at why the Dollar may soon be losing its status as the world’s reserve currency. There are actually quite a few arguments against this occurring; but, this essay focuses mainly on why the dollar is weak and why this may lead to the Euro replacing the dollar as the world’s reserve currency.
A fascinating piece of economic history is the hyperinflation of Germany in 1923. I first encountered the hyperinflation whilst studying GCSE history. There are many examples of how inflation can ruin an economy. Stories like people taking a wheelbarrow full of money to buy a loaf of bread. They left the wheel barrow unattended and when they returned the money was still there but, the wheel barrow taken. This essay looks at some of the causes and costs of hyperinflation.
Interestingly the German government of the fledgling Weimar republic were more concerned about unemployment than inflation.
- Economic Naturalist – Why Economics explains almost everything – is a good read about the application of Economics to everyday life