Inflation can carry with it quite a few costs. But some governments, like Zimbabwe under President Robert Mugabe in the early 2000s, will go out of their to way to create inflation. Why?Well, in the Zimbabwe example, the government printed the money and used it to buy goods and services. The ensuing hyperinflation acted as a tax that transferred wealth from the citizens to the government.However, this is a fairly uncommon reason. Inflation doesn’t make for a good tax and it’s a last resort for desperate governments that are otherwise unable to raise funds.There are other benefits to inflation that would make governments want to create it. In the short run, inflation can actually boost economic output. However, as we’ve previously covered, an increase in the money supply leads to an equal increase in prices in the long run.If there’s a recession, governments might create inflation to spur productivity and ease the economic downturn. However, this type of inflationary boosting can be abused. Long-term boosting causes people to simply expect and prepare for it.Reducing inflation is also costly. If the process is reversed and the growth in the money supply decreases, we get disinflation. Unemployment will likely increase in the short run and an economy can go through a recession. But in the long run, prices will adjust as well.Inflation can be a neat trick for governments to boost productivity in an economy. But it can easily get out of hand and has even been likened to a drug. Once you start, you need more and more. And stopping is awfully painful as the economy shrinks.This concludes our section on Inflation and the Quantity Theory of Money. Up next in Principles of Macroeconomics, we’ll be digging into Business Fluctuations.Subscribe for new videos every Tuesday! Course: a question about the video: video:
did you know on the precursor eggs it says naughty dog if you translate it
I love her! Very impressed that she finished all those wings like a boss!!!!!!!
Guys I dont know what happens when we die but it I don't believe God and to me it's going to be dark
I think the first Easter egg is actually a reference to tf2 because of the spycycle a knife for the spy class
2018 anybody ?
Episode 3 of Lazy Life Hacks
Where does he live
Whoever disliked this is a mother fucking idiotThey are helping children in Africa There is no better way to describe being nice
aww number 1 has the bunny from saints row
THE GOLF CART LNIFE STICKER and THE 180 WRAP AROUND
и не говорите мне что я один русский который смотрит этот трешак (в хорошем смысле)
Why did you change the title from "I had a burnout at work" to "I passed out at work"
Like nothing in the first half of the vid was that difficult, didn’t finish the other half so idk.
Dhandoor / Mandoor
nyc trophy love your game
Oh Dang! I was right this time!
savedaman'slife.Hegotshotandthenthephonetookthetriggerandhesurvived. talking so fast that no one understands cause i only got 7 second to finish the sentence and i wanna prove a point
Who knows when Season 3 will air.
Coby has .01% chance winning
What's interesting about the fact that Furry is driving an Infinity is that SHIELD normally drives Accura
2:43 that thing on the helicopter its a glyph from gat outta hell