Inflation

Contest Info

  • Started: 1/24/2009 17:00
  • Ended: 1/27/2009 18:00
  • Level: advanced
  • Entries: 26
  • Jackpot:
  • FN Advanced 1st Place $5
  • FN Advanced 2nd Place $3
  • FN Advanced 3rd Place $2
  • FN Advanced 4th Place $1
Inflation
Contest Directions: There's a lot of talk about inflation these days - inflation is rapidly eating lifetime savings of many Americans. Analysts say the great inflation is yet to come in 2009.
Inflate things literally. Some examples are: inflated celebrities and politicians floating like balloons, inflated pets, inflated cars and products, etc. Here's a good example by Sassydeb.

Contest Info

    • Started: 1/24/2009 17:00
    • Ended: 1/27/2009 18:00
    • Level: advanced
    • Entries: 26
    • Jackpot:
    • FN Advanced 1st Place $5
    • FN Advanced 2nd Place $3
    • FN Advanced 3rd Place $2
    • FN Advanced 4th Place $1
This gallery only contains our top 20 selections from its parent contest Inflation. All 26 contest pictures can be viewed here.
  • Inflated Liberty

    Inflated Liberty
  • Inflated Bush

    Inflated Bush
  • Mariah Carey Feeling Inflated

    Mariah Carey Feeling Inflated
  • President Obama's Pooch

    President Obama's Pooch
  • Over-eaters Anonymous

    Over-eaters Anonymous
  • Mega-Remmy!

    Mega-Remmy!
  • Closing Time

    Closing Time
  • Plump Jayne

    Plump Jayne
  • Inflated Drugs

    Inflated Drugs
  • sheep methane plugging going wrong

    sheep methane plugging going wrong
  • Earth Balloon

    Earth Balloon
  • Big'um

    Big'um
  • Look Who's Been Fooling Around

    Look Who's Been Fooling Around
  • Reinflation

    Reinflation
  • Obama,

    Obama,
  • Working Out Dick ?

    Working Out Dick ?
  • Package Deflation

    Package Deflation
  • FAT CANDY

    FAT CANDY
  • Half way there

    Half way there
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This contest is fueled by the following news: Inflation (from latin Inflatio inflation) is the process of the decreasing of value of money, in the result of which a lesser amount of goods and services can be procured for the same amount of money. Practically, this is expressed in an increase in prices. The opposite process is deflation the reduction of prices (negative growth). It is a very rare case in the modern economy and it is for a very short time, and generally it carries seasonal characters. For example, prices of cereals immediately after a harvest generally go down. However, deflation is typical for the economy of Japan (within the limits −1%). History: Two cases of the uneven growth of prices due to a decrease in prices on noble metals were highlighted in the history of the world economy. 1. After the discovery of America, a lot of gold and especially silver had started coming to European countries from Mexico and Peru. In the 50 years from the beginning of the 16th century production of silver rose to 60 times more than usual. This caused an increase in prices on goods by the end of the century 2.5-4 times. 2. After the beginning of mining jobs in California (and then Australian) gold mines at the end of the 40s in the 19th century. The extraction of gold in this case grew 6 times more and prices by 25-50%. Inflation of this type was observed in the entire world. Reasons of inflation: The mechanism of the appearance of inflation: 1. The total quantity of goods, which can be procured with monetary aggregates existing in the present economical system, may grow slower than the volume of monetary aggregates, or even go down in such case, the value of goods will increase, and the value of money will decrease. 2. The ratio of volume of goods and the volume of money is connected not directly, but with consideration to the rate of the circulation of monetary aggregates in the present system. On the increase of the circulation of money, this will be the equivalent to the increase of monetary aggregates without changing of the goods aggregates. The amount of money aggregates directly removed from usage by implementing long-term investments, which do not provide quick returns, the level of deposits in banks, refinancing rate value etc. effect the inflation level. The following reasons of inflation are recognized in economical sciences: 1. The monopoly of huge companies on the determination of prices and self production expenditures especially in the raw material industries; 2. The monopoly of trade unions, which control the possibility of the market mechanism to determine the level of salaries acceptable for the economy; 3. A cut down of the actual volume of national production, which at a stable level of monetary aggregates results in growth of inflation rates, as the previous amount of money conforms to the lesser volume of goods and services; 4. The growth of government expenditures, for financing of which the government resorts to money emission by increasing the mass aggregates more than the needs of the goods circulation. This was clearly expressed during the war periods. Types of inflation: Inflation is the process of the depreciation of money in the result of, for example, overflows of the goods circulation channels by monetary aggregates. Inflation is the result of macro economical instability, when the total demand exceeds the total supply. The uneven growth of prices on groups of goods generates unevenness in the norms of the profits, stimulates outflow of resources from one sector of the economy into another (in Russia from industry and agriculture to the trading and financial-banking sector). There is a modern theory of inflation, which permits to determinate its types: open inflation and suppressed inflation. Open inflation characterizes the macro economical imbalance towards demand; in this case the real value of money goes down. Types of open inflation: * Inflation of demand generated by the excess of total demand in comparison to the real production volumes. * Inflation of supply (expenses) means the growth of prices, caused by the increase of expenses in production in the conditions of unused production resources. The increase of expenses per unit of product reduces the volume of products being offered by the manufacturers at the existing level of prices. * Balanced inflation the prices on different goods remain unchanged in respect to one another. * Imbalanced inflation the prices on different goods change for in respect to one another in different proportions. * Forecasting inflation this is the inflation, which is considered in expectations and the behavior of the economical subjects. * Un-forecasted inflation becomes unexpected for the people as the actual rate of growth of the level of prices exceeds the expected. * Adopted expectation of consumers the events connected with the deformation of the consuming psychology. Very high demand on goods favors business men to increase prices on goods (Demand generates supply). Suppressed inflation characterizes the external stability of prices (at active intervention of governments), but growth in the deficit of goods, which also reduces the real value of money.
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