Inflacion

REPÚBLICA BOLIVARIANA DE VENEZUELA
MINISTERIO DEL PODER POPULAR PARA LA EDUCACIÓN SUPERIOR
UNIVERSIDAD NACIONAL EXPERIMENTAL MARÍTIMA DEL CARIBE
DIRECCIÓN DE CIENCIAS SOCIALES
CARRERA: ADMINISTRACIÓN. MENCIÓN: COMERCIO INTERNACIONAL
UNIDAD CURRICULAR: INGLÉS VI

INFLATION, HYPEINFLATION, FIXED CURRENCY RATE ECONOMY FLOATING RATE ECONOMY AND GALLOPING ECONOMY.


Estudiante:Sequera Carcurian, Hendangel de Jesús
C.I. 18.754.071
Carrera: Administración
Mención: Comercio Internacional
Semestre: VII
Sección: A

Catia la Mar, 25 de Enero del 2.010
Introduction.

Economics is the social science that studies the production, distribution, and consumption of goods and services. Common distinctions are drawn between variousdimensions of economics: between positive economics (describing "what is") and normative economics (advocating "what ought to be"). However the primary textbook distinction is between microeconomics ("small" economics), which examines the economic behavior of agents (including individuals and firms) and macroeconomics ("big" economics), addressing issues of unemployment, inflation, monetary and fiscalpolicy for an entire economy. Economics aims to explain how economies work and how economic agents interact. Economic analysis is applied throughout society, in business, finance and government, but also in crime, education, the family, health, law, politics, religion, social institutions, war, and science.

Economics may appear to be the study of complicated tables and charts, statistics andnumbers, but, more specifically, it is the study of what constitutes rational human behavior in the endeavor to fulfill needs and wants. To study these things, economics makes the assumption that human beings will aim to fulfill their self-interests. It also assumes that individuals are rational in their efforts to fulfill their unlimited wants and needs. Economics, therefore, is a social science,which examines people behaving according to their self-interests. The underlying essence of economics is trying to understand how both individuals and nations behave in response to certain material constraints.

The economy focuses on the study of many variables such as the index of prices, price variation, increase or decrease in prices, which allows the study and analysis of inflation andhyperinflation. Well the economy is charged with studying and analyzing economic systems implemented in countries and the effects they cause. Fixed Exchange Rates and Floating Rate Systems also are studied and analyzed by the economy and economic growth.

Hyperinflation.

Hyperinflation: A rapidly accelerating rate of inflation which is perilous to a country's economy because it undermines theability of its currency to perform its traditional functions (i.e., standard of value, store of value, and reliable medium of exchange), and occasions a shift in the ultilization of the nation's resources from productive efforts toward speculation. Hyperinflation could cause a high exponential rise in prices in as short a period as a single month.

Hyperinflation: A hyper inflation is caused by amassive production of money. Money is getting less and less worth. In such times people prefer investing in tangible assets, like precious metals or properties. Very rapid growth in the rate of inflation so that money loses value and physical goods replace currency as a medium of exchange. Hyperinflation: Rapid, out-of-control inflation, at double digit rates per month and more, usually occurringonly during wars and periods of severe political instability. An extremely high rate of inflation, often exceeding several hundred or several thousand percent, that causes a country's money to become practically worthless.

Definition of Hyperinflation
Hyperinflation could be defined as a very high inflation, a condition in which prices increase rapidly as a currency loses its value. In numbers,...