We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

MacroEconomics in Virginia Beach - Essay Example

Comments (0)
Impacts and causes of Hyper-inflation in Virginia Beach Area Tutor Date: Introduction Inflation refers to a persistent increase in prices of commodities whereby, the purchasing power of money tends to fall (Mankiw, p657). Additionally, inflation may be understood by taking into consideration both monetary and price inflation…
Download full paper
MacroEconomics in Virginia Beach
Read TextPreview

Extract of sample
MacroEconomics in Virginia Beach

Download file to see previous pages... Economist and financial analyst determine inflation by finding the difference between the current consumer price index and the previous consumer’s price index (Mankiw, p471). Therefore, this study aims to investigate the impacts and causes of hyper inflation in Virginia area. Impacts of Hyperinflation in Virginia Beach Area The impacts of inflation are numerous whereby, its effects are not only felt by individuals but are also felt by the overall economy. Therefore, hyper-inflation refers to an inflation rate that is above 50 percent, this kind of inflation may be attributed to government actions of printing money in order to finance its expenditure. The act of pritinting money by the Federal government causes an increase in the amount of money in circulation. This may consequently leads to an increase in commodity prices (Mankiw, p382-387). Hyper inflation was first experienced in Germany after the First World War when the German government printed money to reconstructs its economy. Additionally, hyper-inflation was first witnessed in Zimbabwe between the year 2004 and 2009 (Smith, paras1-6). In above connection, the United State reported a hyper-inflation after the Federal government tried print money with an aim of suppressing the negative impacts of world war one. However, the U.S government has taken measures to mitigate as well as prevent the occurrence of hyper-inflation. Among the measures employed include; setting a federal reserve system (Kimberly, paras4-6). In above connection, Virginia anticipated economic and political down turn as a result of hyper-inflation. Legislators in Virginia were wondering whether the establishment of a common currency across the commonwealth could have acted as a perfect substitute for currencies supplied by the Federal government (Kimberly, paras3-5).Some of the substitute that were to be utilized as money include; Gold and Silver. However, the United States Federal government was against the idea because most of their wealth was tied up in foreign debts. On the other hand, the Virginia commonwealth believed that both political and economic problems were attributed to the impacts of hyper-inflation. The Legislators asserted that the problems of hyper-inflation could have been addressed into two major ways namely; motivating people to buy legal tender attached on silver and gold (Kimberly, paras5-6). In above connection, citizens could be motivated to carry out capital investment. This could have been done by government through reduction of tax burdens attached on to such investment. Additionally, it was recommended that Virginia could set a side some intangible assets in order to hedge risk associated with hyperinflation (Kimberly, para6). Causes of Inflation There are two major cause of inflation namely demand pull inflation and cost push inflation. Demand pull inflation involves persistent increase prices of commodities due to higher demand (Tucker, p284). Several factors may be attributed to be the causes of demand push inflation, among the factors include; economic growth, anticipation of inflation in the future, government policies such as fiscal policies, advancement in technology. Whereby, economic growth may leads to an increase in demand for goods and services (Kimberly, paras1-3). On the other han ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
Article Summary The article titled “AUD/USD: Trading the Reserve Bank of Australia Interest Rate Decision” written by David Song, was posted on Saturday 30 April 2011. It discusses the impact of Australia’s monetary policies as a response to target inflation rates, on the Australian dollar and the exchange rate (Song, 2011).
7 Pages(1750 words)Essay
Industry A has 20 firms and a Concentration Ratio (CR) of 20%. Industry B has 20 firms and a Concentration Ratio of 85%. Addressed in the paper are the names of these industry types, characteristics inherent, potential long run adjustments and implications of the anticipated adjustments.
4 Pages(1000 words)Essay
Virginia Beach: Smoking Controversies
The ads encouraged people to smoke. Some people who did not smoke were often seen as ‘un-cool’ or ‘lame’. Then all of that changed. The people who never believed in smoking started speaking up for themselves. Scientist came to realize that smoking could be harmful to a person’s health and significantly shorten their lifespan.
4 Pages(1000 words)Research Proposal
Similarly, high unemployment rate does not augur well for the economy as it tends to raise the income disparity among the people. The paper attempts to explore how unemployment and inflation can be tamed through policy matters. The US has experienced high unemployment and high inflation rates in the past.
4 Pages(1000 words)Essay
It further explains the rational expectations of labour markets to predict behaviour of economy, from a macroeconomic view. Through these models and theories, factors contributing to
8 Pages(2000 words)Essay
The actual or realized expenditure is the amount households, firms and government spend on goods and services, i.e. GDP (Y), while planned expenditure (E) is the amount they would like to spend on the same goods and services. Now the three major determinants
4 Pages(1000 words)Essay
When the UK Government monetary policy committee will increase the interest rate, the demand for credit will be higher and the consumption pattern will decline as the consumers will be moving toward savings rather than consumption spending. It
4 Pages(1000 words)Essay
On the other hand South Korea recorded the most impressive growth in its livings standards since 1960 because it posted a growth of 1304.5%, while the United States posted a growth of 166.2% since 1960. In
1 Pages(250 words)Essay
In that context, President Obama needs to look into some aspects of the American economy, which have not only traditionally constituted the essentials of American economy, but a neglect of which has really diluted the American economy. America badly needs to restore its
2 Pages(500 words)Essay
There are several macroeconomic variables like the rate of interest, the national income, the savings and spending rates and the existence of trade in the country, that are have their effect on these indicators. These indicators and their relationship with the
10 Pages(2500 words)Essay
Let us find you another Essay on topic MacroEconomics in Virginia Beach for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us