Trade System - 4

Talon · 11-24-2012

Posted by Sungwonc01

Inflation is caused when you print lots of money but don't have the wealth to back it up. Each dollar is worth less and less and soon a shovel costs 5000 gralats.

ex:After WWII the German government could not pay the workers so they printed money to give them. But the wealth they had stayed the same. So each dollar was worth less and less.

Thats pretty much all I know.

Basically. Inflation is the said rising of prices of goods in relativity to currency value, not the process that makes it come about.

Fun fact based off your post: In the years prior to WWI, a loaf of bread in Germany was valued at 1.2 Marks. After WWI heading into WWII, the price of a loaf of bread inflated to 12,000,000,000 Marks.