Will Printing Money and QE cause Runaway Inflation?Watch this video on YouTube After the First World War, the German government were left with huge debts and reparation payments to the Allies. Faced with striking workers the government began printing money to pay workers higher salaries. It gave the government a temporary breathing space, …
Inflation is a situation of rising prices in the economy. A more exact definition of inflation is a sustained increase in the general price level in an economy. Inflation means an increase in the cost of living as the price of goods and services rise. The rate of inflation measures the annual percentage change in …
Reader’s Question: Why does printing money cause inflation? Does this always occur? Summary If the money supply increases faster than output then, ceteris paribus, inflation will occur. If a government prints extra money, households will have more cash and more money to spend on goods. But, if the amount of goods stays the same, the …
In the past few months, inflation in the UK has halved from 10 to 4.7%. In the US it has fallen to 3% but ask an average shopper and they may express scepticism, the cost of living seems to be rising much faster. In 2021 Jordan Peterson tweeted that he believes inflation was 15% rather …
A list of some modern-day protectionist measures, including tariffs, domestic subsidies to exporters, and non-tariff barriers which restrict imports. Types of Protectionism Tariffs – This is a tax on imports. Quotas – This is a physical limit on the quantity of imports Embargoes – This is a total ban on a good, this may be …
Greed Inflation is a term used to describe a higher inflation rate due to firms increasing their profit margins. In a period of high inflation, it becomes easier for firms to slip in rising profit margins too. Greed inflation is more likely in markets where firms have a degree of monopoly power and they can …
Core Inflation. This is a measure of inflation which excludes certain volatile and seasonal prices. It will be based on the Consumer price index but exclude prices such as Petrol (subject to oil price variations) Food (subject to seasonal variations) Core inflation will also exclude the impact of government excise duties. Core inflation is seen …
There is no doubt that as the economy emerged from Covid lockdowns in 2021, the world experienced a surge in inflation, not seen since the 1970s. There are many supply and demand factors, which have caused this unexpectedly high inflation. The first factor is that Covid lockdowns, especially in China and Asia, disrupted global supply …