Articles


Inflation it

The inflation Reasons

Rates of inflation

Inflation Types

Inflation Consequences

The Monetary depreciation

Inflation of costs

Open inflation

The Runaway inflation

Struggle against inflation

Inflation in Russia

Inflation in the USA

Inflation in Ukraine

Inflation in Zimbabwe


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The open and suppressed inflation

Inflation is opened or suppressed depending on reaction of the government to distribution of inflationary forces in economy.

When the government does not try to prevent a rise in prices, inflation is called as the opened. Thus, inflation is opened when the prices grow without any time-out. In open inflation, it is authorised to mechanism of the free market to execute the historical function of rationing of scarce goods and to distribute them on ability of consumers to pay. Thus, the basic characteristic of open inflation is work of the price mechanism as the unique agent of distribution. The post-war hyperinflation in the twenties in Germany is 20th century a living example of open inflation.

Open inflation

The Case when the government stops a rise in prices, is called as the suppressed or suppressed inflation. Thus, the suppressed inflation falls into to those conditions in which bullish demonstration is prevented, now, by acceptance of certain measures on settlement and rationing of the prices by the government, but these prices raise at once at removal of these control facilities and rationing. The essential characteristic of the suppressed inflation, unlike opened, that it is directed on prevention of distribution of a rise in prices in the conditions of a free market mechanism is and replaces all it is the system of distribution based on control facilities. Thus, control introduction is the important feature of the suppressed inflation. Nevertheless, many economists believe that at the inflation occurrence, opened, much better, than suppressed. Inflation repressing is condemned, as it bears in itself much more harm, such as a kerbs market, hierarchy of the prices and dependence on rationing officers, uneconomical costs of industrial resources of the basic industries.

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