Thursday, December 3, 2009

Inflation!

Inflation, or the decrease in value of currency, has been a major problem in countries around the world such as Yugoslavia in 1993-1994. A country's economy cannot function properly if there is too much currency circulating, or if prices skyrocket. In the United States, since April '08, our inflation rate has been between 5.4% and -0.2%. As the cost of living rises, the inflation rate also rises. One of the reasons that inflation peaked in October 2008 is because fuel prices skyrocketed, once they went down, so did inflation!

No comments:

Post a Comment