What causes inflation?
Printed From: Progarchives.com
Category: Topics not related to music
Forum Name: General Polls
Forum Description: Create polls on topics not related to music
URL: http://www.progarchives.com/forum/forum_posts.asp?TID=34807
Printed Date: February 02 2025 at 11:53
Software Version: Web Wiz Forums 11.01 - http://www.webwizforums.com
Topic: What causes inflation?
Posted By: IVNORD
Subject: What causes inflation?
Date Posted: February 25 2007 at 20:11
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It’s a poll in addition to my question about inflation here http://www.progarchives.com/forum/forum_posts.asp?TID=34805 - http://www.progarchives.com/forum/forum_posts.asp?TID=34805
What do you think is the major cause of inflation? |
Replies:
Posted By: Atkingani
Date Posted: February 25 2007 at 20:43
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I live in a nation that suffered inflation rates around 90% per year in the 80s but in the last decade it decreased to reach something like 4% last year (2006) and the prospects are to try to get 3.5% or less this year. So, we Brazilians, know very well the misfortune of living with a corrosive inflation in a way that a kind of panic subculture was installed and only recently people are more relaxed about it.
I voted 'Other' since I believe high inflation is caused by a cluster of causes and the main reasons may vary from country to country. In the case of Brazil, all causes listed may be responsible except probably the War in Irak and certainly the actions of prog-fans: all moneyless, always chaffering, whinning, saving coin per coin, complaining CD costs, etc. In fact, if our rulers were prog-fans our inflation rates should be below 0.  ------------- Guigo ~~~~~~ |
Posted By: stonebeard
Date Posted: February 25 2007 at 20:57
 Hence the term "stagflation." ------------- http://soundcloud.com/drewagler" rel="nofollow - My soundcloud. Please give feedback if you want! |
Posted By: markosherrera
Date Posted: February 25 2007 at 21:37
| Low PRODUCTIVITY,the countries with high productivity have low costs,big market give scale economies,workers qualifieds with a good quality control give better products with low costs like in Japan AND SIMILAR COUNTRIES.......if the country dont have the mentioned and others caracteristic,the inflation rise up..like in latinamerica..if there are high offer to cover the demand the prices dont go up too much. |
Posted By: Equality 7-2521
Date Posted: February 26 2007 at 09:22
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I'm guessing you meant to include excessive money printing by governments as a poll choice. None of those answers are really feasible. Counterfiet money could cause it, but it would have to be done on an immensely larger scale than it is now. Excessive money printing. ------------- "One had to be a Newton to notice that the moon is falling, when everyone sees that it doesn't fall. " |
Posted By: IVNORD
Date Posted: February 26 2007 at 09:46
You are correct, I misplaced it by accident, it should be a poll choice.
Governments print money not for the fun of it. There must be a reason. What do you you think the reason could be for the US government to run the press?
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Equality 7-2521 wrote:Posted By: Equality 7-2521
Date Posted: February 26 2007 at 16:20
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It's a routine process to take old money out of circulation and put new
money in just as a matter of needing new bills because old notes become
worn out. The Fed will print new money for fiscal purposes too, they'll
print money to buy government securities from people, thus increasing
the money supply which has repricusions on dragging down the interest
rate and spurring a stagnate economy, or doing the opposite to slow an
economy when it's growing too quickly. Third World coutnries wil often print mass amounts of money to buy goods, usuall weapons, off First World countries that they couldn't afford without printing money. Of course this causes rapid inflation and makes life hell for the citizens. ------------- "One had to be a Newton to notice that the moon is falling, when everyone sees that it doesn't fall. " |
Posted By: markosherrera
Date Posted: February 26 2007 at 18:52
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Posted By: Equality 7-2521
Date Posted: February 26 2007 at 22:42
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That's true but I fail to see what you mean by that. Did I dispute that in my post? Does that effect inflation in anyway?
------------- "One had to be a Newton to notice that the moon is falling, when everyone sees that it doesn't fall. " |
Posted By: Chus
Date Posted: February 26 2007 at 23:20
I second that, too much money on the streets can generate inflation. Also raising the price on gas could cause inflation of the greatest level, since everything moves with it. ------------- Jesus Gabriel |
Posted By: StyLaZyn
Date Posted: February 28 2007 at 12:59
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You didn't list it but for me inflation is caused by
SEXY WOMEN!!!!!  ------------- 
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Posted By: Logan
Date Posted: February 28 2007 at 17:26
... sexy inflatable women even. I prefer inflatable "love ewe long time" sheep. Blow hard to inflate rams.  |
Posted By: markosherrera
Date Posted: March 02 2007 at 19:22
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Posted By: Passionist
Date Posted: March 02 2007 at 19:38
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The thing is, goods and services get more expensive because workers are getting more and more money. Now once you get a raise you notice that what ever it was you used to buy, is more expensive now. You don't realise though, that you get as much. And while that's how it goes, people who can will take advantage of it. You see, let's say you work at a sawmill. Now there's been a payraise, and you're all happy. But there's some place the mill has to get the money to the raise from. So they raise prices. Now you go buy some wood with all that money, and you realise it's more expensive, and complain, and demand more money. And then you are in the vicious circle. You can't really please both sides.
Then we have countries like Hungary, which has inflation to some rate. The people there are generally considered quite poor, and that is why most tourists find the country very cheap. I visited there myself. They need cheap prices to be able to buy stuff with low wages. And the currency is not stable because they still do export/import goods to other countries, most probably in USD, which makes it dependant on the dollar, and the value of forints is compared to dollars. And for that reason they need to have more forints in the country. See, 250 forints is 1 euro, yet they have coins such as 1 forint, which is basically 0,004e = 0.005284 USD. But they must have the money to pay, and the bigger money to do international trading... Which of these options is this? I'm not that good in English. Let's just say globalisation and go with "other"... |
Posted By: Sean Trane
Date Posted: March 03 2007 at 08:48
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Most of the choices in that poll can (and do) contribute to inflation, but the worst factor is the general speculation about everything. ex: A good deal of the inflation is due to the fact that some people are umbelievably rich and have more money than they know what to do with it. This means they invest in homes and other goods, making the demand scarce and selling it back to desperate people looking to buy one, hence making a hefty profit. What they call an investment is close to highway robbery.
just one example in a list of thousands. ------------- let's just stay above the moral melee prefer the sink to the gutter keep our sand-castle virtues content to be a doer as well as a thinker, prefer lifting our pen rather than un-sheath our sword |
Posted By: IVNORD
Date Posted: March 03 2007 at 23:14
That’s like putting the carriage before the horse… to raise wages the price of goods and services produced should be raised first. That, in turn, can be done only when demand fror those goods is growing |
Posted By: IVNORD
Date Posted: March 03 2007 at 23:25
Speculation can exist only in an inflationary environment (it must be cause and effect not the other way around, inflation causes speculation). When money becomes cheap, prices rise. They keep rising until people are willing and able to pay. When the prices become unsustainable (i.e. people don’t the money to pay the ask price) speculation ceases to exist, and the opposite process often ensues. |
Posted By: Nash
Date Posted: March 05 2007 at 18:01
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Prog rock fans! xP ------------- http://imageshack.us/photo/my-images/191/sydbarrettg.jpg/" rel="nofollow"> 
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