Once we had economists, there would no longer be a problem and no inflation would ever happen again, right? WRONG! Here are 5 instances of terrible inflation from both recent history and way back in the past.
David Malpass, president of World Bank, said, “The war in Ukraine, lockdowns in China, supply-chain disruptions, and the risk of stagflation are hammering growth. For many countries, recession will be hard to avoid.”
Inflation is the measure of change in average price of services and commodities, done at regular intervals. It indicates a decrease in the purchasing power of a unit of a nation’s currency as the products and services get more expensive. Basically, inflation is the difference between aggregate demand and aggregate supply of goods and services. When aggregate demand exceeds the supply of goods at current prices, there is a rise in the price level. A certain level of inflation is required in the economy to ensure that expenditure is promoted and money hoarding through savings is discouraged. In India, there are two main sets of inflation indices to measure changes in price levels Consumer Price Index (CPI) and Wholesale Price Index (WPI). These indices measure changes at the retail and wholesale price levels, respectively. CPI tracks any shift in retail prices of essential and daily goods and services consumed by households across the country. In short, it