И Рим имал инфлација а пак не САД.
Тоа е нормално кога читаме стандардни учебници и не гледаме надвор од кутијата што би се рекло.
Why did the Roman monetary system collapse in 8.6 years where the coinage of Gallienus goes from silver to bronze? His father, Valerian 1, was the first Roman Emperor to ever be captured. He was kept alive by the Persian king, used as a footstool as depicted on this relief in Iran. When Valerian 1 died, he was stuffed and put on display as a trophy. Rome could do nothing. The CONFIDENCE in the empire collapsed. Everyone was suddenly afraid of invasion.
The Roman people began to hoard money and expected the worst to unfold. This created DEFLATION as the money supply shrank due to hoarding and the velocity of money imploded. Gallienus was forced to debase to pay troops for as the economy imploded, tax revenues collapsed. On the one hand you expect INFLATION under the one-dimensional relationship thinking. When you realize that if the VELOCITY of money collapses (AS WE ARE WITNESSING TODAY) you cannot create more money fast enough to offset the collapse. This is WHY QE1-3 and the QE of the ECB will fail. This is by no means a flat one-dimensional model.
EVERYTHING must be considered.
The collapse of the Roman Monetary System was under no condition simply because Gallienus decided to debase the currency. This is the classic Paradox – what comes first – the chicken or the egg? The debasement was not the CAUSE of the collapse of Rome, it was the reaction to the collapse in CONFIDENCE that resulted in hoarding for a rainy day and people stopped consuming luxuries. The economy fell to necessities and those prices did rise.
The collapse of the Roman Monetary System was under no condition simply because Gallienus decided to debase the currency. This is the classic Paradox – what comes first – the chicken or the egg? The debasement was not the CAUSE of the collapse of Rome, it was the reaction to the collapse in CONFIDENCE that resulted in hoarding for a rainy day and people stopped consuming luxuries. The economy fell to necessities and those prices did rise.
In economics, we are plagued by one-dimensional theories that lead nowhere and are constantly proven to be wrong. Inflation is not a single one-dimensional field. It is driven by various causes. The central key component is DEMAND for here we have a rather binary stimulant that produces important different effects.
If the economy is in a boom and people are BULLISH, then you will also find economic growth and the typical inflation that people expect – rising prices that are really driven by DEMAND. However, you can also have a decline in economic growth with rising prices that ends up being DEFLATIONARY for it depends upon what you are measuring. Such trends produce the rise in the cost of government (inflation) mixed with the decline in disposable income (deflation) as government expands and consumes an ever increasing proportion of society’s total productive capacity.
Such confusion admixture trends of inflation/deflation emerge with rising prices because of the rise in taxation and regulation increase the cost of doing business. This is by no means set in motion by rising DEMAND. The total volume of business declines as DEMAND collapses with the velocity of money. The first trend of inflation with rising prices coincides with a BULL MARKET and the second form of rising prices unfolds with a BEAR MARKET driven by rising taxes and regulation – not an increased in DEMAND.
This is part of the eternal battle between Public and Private sectors.
Is Inflation Definable?
Inflation is something which most people perceive as a single dimensional force with its cause and effects one and the same. But inflation is far from such a simplistic explanation. Its causes are numerous a s well as its effects.
Inflation is largely multi-dimensional. It can arise from labor demands, raw material shortages, overall changes in government spending relative to the supply of money as well as changes in the value of the currency in world markets relative to imports. Nevertheless, inflation fails to conform to any one single source or cause preferring to remain a multiheaded dragon.
The Monetarist Theory of inflation rising and falling in union with the supply of money, is hardly valid after our recent experiences between 1980 and 1985 . After all, the fiscal deficits of the United States exploded, the national debt more than doubled, yet inflation subsided while the value of the dollar soared to record highs. According to the Monetarist Theory, those events should have produced outrageous inflation. Instead, this same period is called the beginning of deflation created by Volcker.
All core economies simply collapse in
Sovereign Debt Default. Hyperinflation takes place in the peripheral economies and is caused by the failure of capital to invest that is also witnessed by massive hoarding of wealth.
Likewise, all core economies collapse and take down everyone else with them. They are the Dark Cloud of doom. When Spain defaulted several times, they destroyed the Italian bankers. Banking then moved to Germany. They defaulted on them as well. They used the Spanish Inquisition to confiscate assets causing the Jews to flee to Amsterdam. That is where the first exchange began and in 1689 William of Orange took the Dutch financial know-how to Britain. Britain collapsed after World War I, and the Financial Capital of the World move to America. This is why the Financial Capital of the World migrates. It leaves behind a economy decay of default – not hyperinflation.
Because the core economy has attracted capital, it becomes the greatest debtor. They default like a bank when there is a run on its assets. Hyperinflation unfolds in a peripheral economy when they can no longer borrow and seek to continue to pay their bills with currency that goes into a spiral decline.
We do not face hyperinflation in Europe or the USA. These are not peripheral economies. These will simply
implode into a Sovereign Default. This is far more dangerous for this is what causes war and brings society to the brink of extinction.
Hyperinflation is typically domestic in its impact for foreign capital fled long before. What we face is much more like a bank run ending in collapse. Then the finger-pointing follows and usually war.