New World Economics

By: Nathan Lewis
all contents copyright Nathan Lewis 2005-2013

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Contact: nathan@newworldeconomics.com
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"Easily the most important book of 2013 ... and the best book on money that's yet been written"
-- John Tamny (RealClearMarkets.com)


Want a basic introduction? Watch a thirty-minute presentation given at the Cato Institute in February 2014,
or this
two-minute video on how to introduce and use a parallel currency.

Read my previous book, Gold: the Once and Future Money (2007), available in five languages worldwide.

I'm on Twitter @NathanNWE
Click Here for the Traditional City/Heroic Materialism Archive
 



A Brief History of "Inflation," 1949-2013



October 26, 2014


We're following up our brief history of world currencies in the postwar period:

October 19, 2014: A Brief History of World Currencies, 1949-2014

This week, we look at similar data from the IMF, namely, the IMF's official CPI info for the same time period. Here it is:

Click here for global CPI "inflation" data, 1949-2013

Here we see the change in the official CPI for each country, compared to a year earlier. Increases in the CPI of less than 10% are rendered in white. The range of 10%-30% is on a graded scale, from light orange to dark orange. Over 30% is in red. We saw earlier that the IASB definition of "hyperinflation" includes a rise in the CPI of 100% or more over a three-year period, which works out to about 26% per year, or 2% per month. It probably doesn't seem very "hyper" to most people, but in actual practice, a lot of things start to break around this level.

October 13, 2013: What Is "Hyperinflation"?

Not surprisingly, things are pretty calm during the Bretton Woods gold standard era, until 1971, and become rather problematic afterwards.

Here's another look at the same data. This uses the cumulative rise of the CPI over the previous three years. The range of 30% (over three years) to 100% is in a sliding orange scale. Over 100% ("hyperinflation") is in red.

Three year CPI data, 1949-2013

As before, it is a story of chaos and struggle. It is so much better to run a capitalist economy without this kind of madness.




Recent Commentary:


Click Here for the Traditional City/Heroic Materialism Archive
Click Here for the How Banks Work series
Click Here for the NWE Six-Month Ultimate Health and Fitness Program

October 19, 2014: A Brief History of World Currencies, 1949-2014
October 16, 2014: Russia's Currency Crisis: This Is So 2008!
October 12, 2014: Taxes on Capital and Capital Accumulation
October 2, 2014: Dozens of Countries Have Already Kicked the Fiat Currency Habit
September 28, 2014: "The Fate of Empires," by Sir John Glubb

September 21, 2014: Japan 2014: "Abenomics" and the Assets of Banks
September 16, 2014: Six Great Things an Independent Scotland Could Do

September 11, 2014: Japan's Graying Population Needs New Solutions, Not Old Failures
September 7, 2014: HTMAPODWTTC 14: Mobile Homes and Manufactured Housing

August 28, 2014: Economic Abundance with a Shrinking Population: Why Not?
August 24, 2014: Summer Slackoff: Ultralight Hiking 2014
August 17, 2014: Gold Holdings of Central Banks and Governments 2: The Larger View, 1850-2000

August 10, 2014: Gold Holdings of Central Banks and Governments, 1913-1941
August 7, 2014: Don't "Kitchen Sink" the Monetary Debate. Gold-Based Money Is Simple.

August 3, 2014: The Reichsbank, 1924-1941
July 27, 2014: The Bank of France, 1914-1941

July 24, 2014: On the Path To a Better Monetary System: Bretton Woods Didn't Fail Because of the "Balance of Payments"

July 20, 2014: The Bank of England, 1914-1941
July 18, 2014: Foreign Exchange Rates 1913-1941 #8: A Brief Summary
July 17, 2014: Devaluations of the 1930s Don't Justify Today's Funny Money Excess
July 13, 2014: HTMAPODWTTC 13: Getting Other People's Cooperation
July 10, 2014: Paul Volcker Dreams of a "New Bretton Woods." But What Would That Look Like?

July 3, 2014: The "Income Inequality" Debate Is Not About Income Inequality
June 22, 2014: Foreign Exchange Rates 1913-1941 #7: Switzerland's Independence; Turkey Avoids Devaluation
June 19, 2014: Explaining "Freaky Friday" -- How the Gold Guys Became Their Own Worst Enemies

June 4, 2014: Health and Fitness 2014: The Rest of Your Life
June 3, 2014: Book Review: Steve Forbes Leads the New Renaissance in Monetary Understanding
June 1, 2014: Foreign Exchange Rates 1913-1941 #6: Hyperinflation in Poland; Russia's WWI Decline

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