Factors that Lead to Hyperinflations Essay Example | Topics and Well Written Essays - 1500 words

Factors that Lead to Hyperinflations - Essay Example To provide an empirical verification of hyperinflation phenomenon, a more focused study on the ravaging hyperinflation and its impacts on Zimbabwe are attempted in section 4. Some of the course correction that a country such as Zimbabwe requires to embark on to arrest its hyperinflation is presented in section 5, before section 6 concludes this essay. A number of economists have attempted to define inflation, in their own terminology. For professor Crowther, inflation is marked by declining value of money, and conversely the rising level of prices (197). Pigou observed that inflation occurs when money income expands more than proportionately to income earning activity (439). In general, inflation is associated with a state of abnormal increase in the quantity of money. Inflation is linked to the issue of too much currency in the economy (Hawtrey 60). For Coulborn, inflation is a monetary phenomenon where "too much money chases too few goods" (356). According to Keynes, inflation is caused by an excess of effective demand over supply (296). For Friedman, inflation is a process of steady and sustained increase in prices. Inflation, thus, is a monetary phenomenon characterized by high prices, and conversely falling values of money (17). Hyperinflation is a typical case of an extremely rapid growth in the general level of prices, las ting for a number of years. Although a rise in the general prices of more than 50 per cent is treated as hyperinflation, there is no well-defined threshold. All these definitions point to one basic point: When the quantity of money in circulation exceeds the total amount of goods and services in the economy, it results in extraordinary increase in prices which we define as hyperinflation. It may be noted that hyperinflation is also called a "runaway" or "galloping" inflation, where the quantum of money increases to an extent that its value declines to an incomprehensible level. Historically, hyperinflation has occurred in China, Greece, Taiwan, Austria, Germany, Hungary, Poland and Russia. In recent years, countries such as Chile, Argentina and Bolivia experienced hyperinflation. At present, hyperinflation in Zimbabwe is a great cause of concern for the economists as it continues to threaten the livelihood of its people. 3. Causes of Hyperinflation: 1According to Prof. Fisher, other things remaining constant, as the quantity of money in circulation increases, the price level also increases in the same proportion and the value of money decreases, correspondingly (45). 1In its rigid form, the quantity theory of money defends a strict proportionality between changes in the stock of money and the general level of prices. If M = stock of money in circulation, V = velocity, P = general price level, the theory states that the level of P depends on MV. Since V is assumed to be constant in the short-run, P and M are proportional to each other. Thus, if P represents the general price level, then 1/P captures the purchasing power of money. The implication is that when the stock of money increases, the value of money decreases, which reflects proportionately on the increase in general level of

Nursing practices - Past, Present and Future Essay

Nursing practices - Past, Present and Future - Essay Example ppened and whether these changes are relevant and significant not just in the nursing profession itself but as well as in the health care delivery to patients. Before, nurses are deemed associated with and only secondary to physicians. The role of nurses then were limited to menial delivery of patient care such as changing bandages, changing of bed linens, providing sponge bath and procedures that are deemed around as dirty work (Casciato 2011; Kessler et al., 2012, p. 22). Today, the job role of nurses have made an impact and leaped over the years from a low profile shadowed job by a physician and emerged now as independent profession that has made a major impact in the health care industry. The utilization of nursing job roles in the industry can be seen in the presence of emerging nursing branches such as school nursing, occupational health nursing, travel nursing, home health nursing and community health nursing. This is a proof that the job roles of nurses are not just limited to the traditional hospital bedside care and extends to even broader aspect of health. Allen cited that the phenomenal changes in the nurses’ job content happened during the 1960’s. First as a result of medical science that have expanded and delegated clinical responsibilities to nurses. Second, was due to the growing numbers of chronically ill patients requiring care. True enough the job role of the nurse has expanded in response to the changing populations and the philosophical shift toward health promotion rather than illness cure (Masters, 2009, p. 176). Education can be pointed as the biggest turning point nurses had in the advancement of the career. Before, nurses are merely educated just trained. Now, nurses are more educated having Bachelor’s, Master’s and even Doctorate degrees. Education and training has made nurses equipped with even greater knowledge that made the nursing profession cope up with the technological advancement and modernization. Indeed