Why is inflation harmful to the economy? These are the inflationary episodes in history
What happens to the labor market and the economy when the pace of price changes gets out of hand? Companies limit investments and close businesses, employees make raises, bank deposits lose their sense.
- Current trends, rising increases, sources of the economy that face prices, sources, sources of energy as well as high, fast, fast and rapid development
- Since gaining independence, Poland has experienced several episodes of a galloping century – at the beginning of the 20th century, and then in the 1950s, at the turn of the 1980s and 1990s.
- Economists do not hope that they have increases in increases, estimating that in 2023 it will decrease in Poland
- More such information can be found on the main page of Onet.pl
Over 6 percent per year – this is what inflation is currently in Poland. You do not have access to the problem yet, but the problem of ubiquitous permeability affects our budgets more and more. The reasons for the increases are: global cost management, fuel management, energy and garbage fees. He accompanies them high demand, strong economic growth and economic growth. various post-epidemic – accompanying the shaping of computational and monetary impulses.
The equivalent of about 13 percent was pumped into the Polish economy as part of the protection against the effects of COVID-19. GDP. In addition, interest rates fluctuated in various areas for many months. The message investors around the world investors safe for the investorby buying gold or real estate that is currently booming.
Prices on the shelves
Who and how is counting inflation in Poland? The rate information is represented by the Central Statistical Office on a monthly, quarterly, semi-annual and annual basis. These indices are calculated on the basis of the price meters of consumer goods and services in the retail market and household budgets. Based on the weighting system database, Inflation currencies. This year, the category of alcohol in the basket-inflation category is “meringue and meringue”, accounting for as much as 27.8 percent. Currencies.
What is happening – that prices on store shelves are constantly rising and the money in our wallets is depreciating – when inflation spins out of control? Employees press for pay rises, entrepreneurs operating in a spiral of ever increasing prices, they give up or arrange their plans, preparation management, economic development. Bank deposits cease to make sense. We invoke such a strong market of investors looking for safe places where they can invest their funds.
Behind already, in textbooks, it is considered annual increase in the prices of the inflation basket by 2.5%. For many months, among the EU inflation leaders – inflation at the same time as this year, close to 7%. The grid bother even a row that introduces a new one work packages as part of the so-called anti-inflationary shield.
It assumes a reduction in fuel prices, fuel, VAT for gas and special materials, and a new supplement for families. According to economists, these causes soften the actions, the causes will not contribute to the causes of causes. At the same time, following other regions of CEE Europe – Hungary, Poland following the footsteps. As you can see, policymakers are struggling thanks to avoid inflationary entry, knowing something about the tool.
From design to socialism
Many countries in the last century have struggled with the consequences. , in the United States galloped in the 1940s, conquered thrones in wars, and then the economic boom after the victories of World War II. On the other hand in the 1970s, the US economy experienced two oil shocksnot to mention the rise in oil prices from around $ 3. make nearly $ 50. at the end of the decade.
Arab economic lines associated with OPEC, for economic reasons, authors about the restriction of the acquisition of black gold. A year later, in 1974, the American economy started by 0.5 percent. The second oil shock was caused by the Islamic revolution in Iran. I drove the cost of participation in the shares deep – the 1970s later.
In Europe in the world census. It faced public inflation in the Weimar Republicwhich in 1923 recorded an average monthly price increase of 30 thousand. percent German accountants even suffered from the “zero stroke” psychological trauma in the form of the contribution of the compulsion to post rows of zeros.
The thieves were pounding for bills, money for the street, money for the suitcases themselves, much more. In turn, the prices of a cup of coffee ordered in a cafe could double before the guest could drink it. Many historians also argue that German hyperinflation as a relief argument has become one of the reasons for Hitler’s rise to power.
At that time, the Second Republic of Poland was also struggling with an inflationary spiral. The country, which was reviving in the 1920s, after the devastation of the partitions of war, groundless activity in the public administration and the development of the economy, administration and military administration during the war with Russia in 1920, recorded a price increase of 2.5 million in four years. percent
While in 1921, the denomination on the banknote was 10 thousand. Polish marks – a year later, banknotes with a face value of 10 million marks. This story was the last appointment bank in history. The gallop of prices has led to expensive, great robotic banks, great and immense poverty. The economist managed to achieve hyperinflation Władysław Grabskiwhich manufacturer treasury and currency reform, banned the reprinting of coins, and then the value of the Polish zloty, by 1.8 million Polish marks.
A few months later, prices began to stabilize, although on the other hand, his reforms caused, among others, the growth of enterprises and enterprises to bankruptcy many It was not until 1926 that the economic situation in the whole of Europe, including Poland, began to improve. We recorded another inflationary anomaly in the 1950s.
She was in even worse condition in 1946 Hungarian economy devastated by the war. All because of huge contributions and massively printed money. While in 1945 one dollar cost 128,000 pengő, it was later paid for 460 quadrillion pengő. Prices in Hungary were doubling every hour.
While currency money was literally on the street, Hungarians struggled to survive, without open access to the immediate offer like food or supplies. The country, broken by inflation, is not difficult to include in war sanctions, and the hyperinflation was suppressed by the exchange of coins, restoring the old name of the forint, introduced in the times of Ludwik Węgierski.
At the turn of the political system
It also experienced gigantic technology at the turn of the 1980s and 1990s., the ruling party to decide in our country by the government of Paweł Rakunek, the government-held food prices and indexation. To the not only universal price tag. The inflationary soil had already fertilized our country in the 1970s, Comrade Edward Gierek, who carelessly indebted our country for billions of dollars.
After the urenia was appreciated, it got to the point that the shortages were simply, and the Poles were not buying well in stock permanently. At the same time, salaries, pensions and disability pensions were growing rapidly, while the National Bank of Poland, struggling on the one hand with high debt, and on the other – trying to somehow jam budgets, printed tons of banknotes with ever higher denominations.
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At the turn of 89 and 90, the annual inflation was robusta 639.6%., and foreign debt – $ 42.3 billion, or almost 65 percent. Polish GDP. The Polish economy stood on the brink of a precipice. The price rush was curtailed by the plan of Leszek Balcerowicz, finance minister in the government of Tadeusz Mazowiecki. The plan was developed under the direction of the liberal economist Jeffrey Sachs, who became famous, among others. after the end of hyperinflation in Bolivia.
in the 90s of the twentieth century we were already leaving with inflation at a single-digit level. However, the changes were transformed by Balcerowicz’s plan, incl. to the series of bankruptcies and property and social insurance. What awaits us now? Economists reassure us – hyperinflation does not suit us. Moreover, with its latest forecasts, the European Commission that inflation in Poland will reach – 5.2% in 2022, and in 2023 it will slow down to 2.6%. May.