6 things you should know about inflation

1: Inflation is a sign of a good and prospering economy (to an extent)

Inflation is at a good rate when its at 2-3% anything higher is bad for the economy. Higher wages means more demand which keeps people buying things so money is always flowing.

2: The inflation rates for college housing are increased significantly

It got more expensive because of the inflation $68,500 to $118,400 for housing at KU from the years 1990 to the year 2000. This is a significant growth. Over double what it cost in 1990. Imagine today's numbers.

3: Sudden inflation is a bad sign economically

The sudden inflation can lead to a skyrocket of prices called hyperinflation. When prices fall, deflation takes in and recession or even depression can occur.

4: At its worst, in Hungary during WWII a loaf of bread cost a large wagon full of money to purchase

The government in Hungary thought that the solution to the economic burden that was plaguing it at the the time was to print large amounts of money. In turn their money became practically worthless. The people were burning money and throwing it into the streets. Mothers would send their children with wagons full of money to buy a loaf of bread.

5: A dollar from 1950 is worth about $0.12

Like anything else the dollar has an inflation rate. As the United States was gaining momentum in the power it already had as a wealthy, first-world country its money became worth more and more. Now as prices rise and the US dollar is more valued it is worth more than it one was. For example if I bought a pack of gum for $3.00, it would cost $0.36.

6: Historians believe that runaway inflation caused the fall of the Roman Empire

Towards the end of its life the Roman economy was very bad. They had been fighting in many wars and inflation was enormous. Once inflation is too high people cannot afford things and wars are harder to fund.

Comment Stream

2 years ago

Love this--the historical facts are very interesting!