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The countries with ultrahigh rates of increase of monetary weight




Rates of superfluous growth of monetary weight are calculated as a difference between

Nominal rates of increase of monetary weight and rates of increase of gross national product in constants

The prices. Source: World Bank, World Development Report, 1992 (tables 2 and 13). When the government inflates inflation, people spend less time on Manufacture and is more - on attempts to protect the well-being. The impossibility precisely imagine the future rate of inflation can To make essential impact on personal riches of everyone, owing to what

People reduce an investment of resources in manufacture of the goods and services, in exchange

Directing them on reception of the information concerning the future rates of inflation.

Ability of the businessman to predict the future changes of the prices begins more

Significant, than talent of conducting and the manufacture organisation. Gamble

Blossoms in the same measure in what people try to outride each other in Assumptions of the future price level. Means flow in the speculative Actives, such as gold, silver and works of art, passing Industrial investments - buildings, cars and scientific and technical Workings out. As resources leave productive spheres Activity in unproductive, the economy degrades.

But, probably, the most destructive consequence of inflation is a blasting of belief

Citizens in the government. People expect from the power first of all Protection of the person and property against all swindlers encroaching on Another's good. If the state becomes the swindler, "diluting" Cost of national currency, - whence at people can undertake

The confidence that the state will protect their property from encroachments and

Becomes on the guard of strict observance of contracts, punishing for Criminal behaviour? If the government it "dilutes" money, hardly Is capable to punish, for example, the businessman diluting the orange Juice water, or the corporation diluting the capital with the help Unapproved shareholders of issue. For an establishment of a stable monetary mode the vital defined Principles. If the country has the central bank which carries out The monetary policy this bank should be independent, first, from

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Delicious Love Icons Speed up development of e-romance Web sites and applications using ready-made Delicious Love Icon Set. The pack contains more than sixty love images and pffers many symbols and objects typical to Web sites about human relationships.

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