Lecture 2 - Inflation

Lecture 2 - Inflation - Inflation - Inflation was going on...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Inflation - Inflation was going on everywhere; especially high in European countries - Hyperinflation took place in Germany, Russia and Hungary - Germany was required t pay reparations (a debt incurred from starting the war) - Hyperinflation in Germany allowed Hitler to gain power - Hyperinflation: a drastic change in prices which cause inflation to rise significantly in one year Wholesale Price Index - Germany Year Price 1914 1.25 1918 2.45 1919 8.3 1922 (January) 70.3 (December) 1475 1923 (January) 19,835 (August) 944,000 (September) 23.9 million (October) 7.1 billion (November) 726 billion (December) 1.3 trillion - The government had to make wage and price controls helped Germany, but once the war was over, inflation took over - Creditors were hiding because they didn’t want to be paid in worthless money - Hyperinflation eventually did end, but it did have long-term effects on Germany - The middle class was almost completely wiped out because of the drastic change Causes of Hyperinflation 1. Budget Deficits
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/18/2008 for the course ECONOMICS ECN 220 taught by Professor Jolly during the Winter '08 term at Ryerson.

Page1 / 2

Lecture 2 - Inflation - Inflation - Inflation was going on...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online