In the 1980s inflation rates came down in the United States and in Europe and

In the 1980s inflation rates came down in the united

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. In the 1980s, inflation rates came down in the United States and in Europe and have largely stayed down. Countries with Relatively Low Inflation Rates, 1960–2016
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This chart shows the annual percentage change in consumer prices compared with the previous year’s consumer prices in the United States, the United Kingdom, Japan, and Germany. Figure 2. Countries with Relatively Low Inflation Rates, 1960–2016 This chart shows the annual percentage change in consumer prices compared with the previous year’s consumer prices in the United States, the United Kingdom, Japan, and Germany. Countries with controlled economies in the 1970s, like the Soviet Union and China, historically had very low rates of measured inflation—because prices were forbidden to rise by law, except for the cases where the government deemed a price increase to be due to quality improvements. However, these countries also had perpetual shortages of goods, since forbidding prices to rise acts like a price ceiling and creates a situation where quantity demanded often exceeds quantity supplied. As Russia and China made a transition toward more market-oriented economies, they also experienced outbursts of inflation, although we should regard the statistics for these economies as somewhat shakier. Inflation in China averaged about 10% per year for much of the 1980s and early 1990s, although it has dropped off since then. Russia experienced hyperinflation —an outburst of high inflation—of 2,500% per year in the early 1990s, although by 2006 Russia’s consumer price inflation had dipped below 10% per year, as Figure 3 shows. The closest the United States has ever reached hyperinflation was during the 1860– 1865 Civil War, in the Confederate States. Countries with Relatively High Inflation Rates, 1980–2016
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These charts show the percentage change in consumer prices compared with the previous year’s consumer prices in Brazil, China, and Russia. (a) Of these, Brazil and Russia experienced very high inflation at some point between the late-1980s and late- 1990s. (b) Though not as high, China also had high inflation rates in the mid-1990s.
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Even though their inflation rates have come down over the last two decades, several of these countries continue to see significant inflation rates. Figure 3. Countries with Relatively High Inflation Rates , 1980–2016 These charts show the percentage change in consumer prices compared with the previous year’s consumer prices in Brazil, China, and Russia. (a) Of these, Brazil and Russia experienced very high inflation at some point between the late-1980s and late-1990s. (b) Though not as high, China also had high inflation rates in the mid-1990s. Even though their inflation rates have come down over the last two decades, several of these countries continue to see significant inflation rates.
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