₦airaland Forum

Problems of inflation
Why is inflation such a problem?

Fall in value of savings. If people have cash savings, then inflation will erode the value of your savings. £1 million marks in 1921 was a lot. But, due to inflation, two years later, your savings would have become worthless. High inflation can also reduce the incentive to save.
Menu costs. If inflation is very high, then it becomes harder to make transactions. Prices frequently change. Firms have to spend more on changing price lists. In the hyperinflation of Germany, prices rose so rapidly; people used to get paid twice a day. If you didn’t buy bread straight away, it would become too expensive, and this is destabilising for the economy.
Uncertainty and confusion. High inflation creates uncertainty. Periods of high inflation discourage firms from investing and can lead to lower economic growth.
More on problems of inflation

Printing money and national debt
Governments borrow by selling government bonds/gilts to the private sector. Bonds are a form of saving. People buy government because they assume a government bond is a safe investment. However, this assumes that inflation will remain low.

If governments print money to pay off the national debt, inflation could rise. This increase in inflation would reduce the value of bonds.
If inflation increases, people will not want to hold bonds because their value is falling. Therefore, the government will find it difficult to sell bonds to finance the national debt. They will have to pay higher interest rates to attract investors.
If the government print too much money and inflation get out of hand, investors will not trust the government and it will be hard for the government to borrow anything at all.
Therefore, printing money could create more problems than it solves.
See also: Printing money and national debt
Hyperinflation in Germany during the 1920s
inflation

Inflation was so bad in Germany that money became worthless. Here a child is using money as a toy. Money was used as wallpaper and to make kites. Towards the end of 1923, so much money was needed, people had to carry it about in wheelbarrows. You hear stories of people stealing the wheelbarrow, but leaving the money.

Printing more money is exactly what Weimar Germany did in 1922. To meet Allied reparations, they printed more money; this caused the hyperinflation of the 1920s. The hyperinflation led to the collapse of the economy.

Look bro. I don't know where u are from. If south south, u may be of a younger generation. Eastern region comprised of South East and South South previously. We are all blood. After all d resources is better to be shared to develop both regions. Do u know over 90% of oil wells belong to the north? Will u continue to stay in a system where ur region is massively undeveloped?The British divided these regions into states using the North. Have u not noticed dat despite all the money, Nigeria is still a 3rd world zoo. All the machinations have been put in place to benefit the north and to a smaller extent, the south west. A smaller country will make it develop rapidly and diverge into other economic markets instead on hoping on oil which will eventually finish. Have u not heard of Nichodemuses? Some people in south south will not publicly support. But when referendum come. They will prefer to be Biafra than Nigeria. It is better to embark on a new journey that continuing an old journey with no end in sight.

Well I've not watched all. We cannot really place the best because of different factors and time ranges. I will say 24 should be the best of all time if I have an opinion. But it is hard to know exactly. Game of thrones is like most watched. I think the titles should be about the best producers of all time which should be Fox for 24, Alias and Prison Break.I think the best is 24. I mean how can u do a movie for 8 seasons and still captivate the viewers mind and return with a season 9 at London with a banger. All its seasons had 24 episodes of 44 mins each detailing the 24 hours for the duration of the season. Nikita has only 4 seasons c'mon. Got, 8 but like 6-10 episodes. Money was spent and made from 24.

tolexy007:
it is either samsung or Nothing... sorry i dont do China

.. See you even Samsung and iPhone make their phones in China because of low cost of production. Other phones are giving them a run for their money. Huawei is 2nd most sold phone in the world. Without this Google issue, they will be the first in two years time.

Well people talking about the Igbo people in such terms know nothing. Okorocha is just playing the last card off his chest to gain some sort of popularity. Do not ever mention responsible Igbo leaders like wike, umahi and obiano

Well people talking about the Igbo race in such terms know nothing. Okorocha is just playing the last card off his chest to gain some sort of popularity. Do not ever mention responsible Igbo leaders like wike, umahi and obiano again

Please, is this frigoglass legit and how much do they pay for technical Trainee?