Corporate Sustainability

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Date Submitted: 04/18/2012 02:27 AM

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Inflation

&

Hyperinflation :

Inflation is simply explained as the printing of money

When gas prices go up, when your basic necessities prices and grocery bill rises in value these are all symptoms of inflation and it happens when Central Banks print money out of nothing with no proper backup

Milton friedman economist Noble prize Winner once said that “Inflation is a Form of Taxation that can be imposed without Legislation” and in my opinion it’s what makes inflation the invisible dreadful factor of any economy.

Inflation is decreases the value of money or raises the price of goods and services, while hyper inflation (a very high inflation) can be translated to Money Losing its value to an extent not to be equivalent for buying products it previously was buying easily, in other terms it changes the way money and assets meant and the equality of trade.

Normally in this situation producers and owners of diverse assets or service providers will be the decision makers on the new terms they will be willing to initiate a trade, in most cases bartering is the situation that will happen so despite a free market where every product owner is eagerly willing to sell his products for money to convert the money to his raw materials for the basis of production in the hyper inflated market the sellers will decide that bartering the goods will be the best way to control their wealth because of money loosing it’s value in a fast pace, therefore paralyzing the Market and all industries in short while and ultimately an economic depression.

But for me the most suspicious point in the hyperinflation is the reallocation of wealth in hyperinflation times which transfers the wealth from general public which holds money to Governments which prints money, this somehow catches my attention that the trend we are falling into may be pre designed by governments to reallocate the wealth in some countries or regions which is surely against the general public which is the whole country’s...