Question Details

MONEY SUPPLY INFLATION
If governments are aware that increases in the money supply cause inflation, why do some countries increase the money supply by significant amounts anyway? Give examples of countries that have faced situations of hyperinflation. What caused it? What did they do to correct it? Are any countries currently in trouble? While the U.S. isn't facing problems of hyperinflation, you can also relate this discussion back to expansionary policies which tend to increase growth at the risk of higher inflation. Today, the Federal reserve is considering printing more money in the face of this recession. The 1970s era of "stagflation" could also be used as a point of comparison. 

You may also focus on the costs of inflation, whether there is a “real” cost to society or not. If your focus is the United States, inflation trends and latest figures are available at the Bureau of Labor Statistics’ website at http://www.bls.gov  Two paragraphs




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