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Inflation

Inflation. Ali Roberts. What is Inflation?. Inflation is when the value of money decreases, but the value of goods increases. One cause of inflation is too much money being made. Downfalls of Inflation. The effects aren’t always good when inflation occurs. Why is inflation a problem?

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Inflation

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  1. Inflation Ali Roberts

  2. What is Inflation? Inflation is when the value of money decreases, but the value of goods increases. One cause of inflation is too much money being made.

  3. Downfalls of Inflation The effects aren’t always good when inflation occurs. Why is inflation a problem? • When an elderly person wants to retire on a fixed income, the money will be worth less and less as inflation gets higher. • “When the balance between supply and demand spirals out of control, buyers will change their spending habits as they meet their purchasing thresholds and producers will suffer and be forced to cut output. This can be readily tied to higher unemployment rates.” "Inflation - Causes & Effects." Day Trading & Stock Market Strategies - Mysmp.com. Web. 23 Feb. 2011. <http://www.mysmp.com/bonds/inflation.html>.

  4. Roman Coins Ancient Roman coins were made of silver. As inflation got higher, the Romans started to make their coins from wood, then coat them in silver, so the money was worth less.

  5. Inflation in Ancient Rome • Rather than raising taxes, Nero and other emperors reduced the currency of money by reducing the amount of silver used in each coin. • One of the common coins were Denarius. Denarius were minted at 84 to the pound. • Many Romans stopped using coins, and began to barter for what they needed.

  6. Inflation in Ancient Rome • Salaries were eventually paid in food and clothing, while taxes were collected in fruits and vegetables. • Diocletian tried fixing the problem of inflation by setting price limits on goods. If you charged more than the limit, you could be killed. • Inflation is one down fall of ancient Rome.

  7. Solving the problem of Inflation today • Instead of borrowing money from other countries, the united states could start attempting to save it. • Making the entire worlds money the same. By keeping the same currency, this may help balance it out so everything is equal. • The government could control the amount of money printed more often. Or limit the amount per week.

  8. Bibliography • "Inflation - Causes & Effects." Day Trading & Stock Market Strategies - Mysmp.com. Web. 23 Feb. 2011. <http://www.mysmp.com/bonds/inflation.html>. • "How To Solve Inflation." IdeaMarketers - Free Content Directory. Web. 23 Feb. 2011. <http://www.ideamarketers.com/?How_To_Solve_Inflation&articleid=607598>. • "Rome.info Fall of the Roman Empire, Decline of Ancient Rome." Rome.info Rome Tourist Information, Ancient Rome Travel Guide. Web. 23 Feb. 2011. <http://www.rome.info/history/empire/fall/>.

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