Monetarists assume that the velocity of money is unaffected by monetary policy at least in the long runand the real value of output is determined in the long run by the productive capacity of the economy. Under these assumptions, the primary driver of the change in the general price level is changes in the quantity of money. With exogenous velocity that is, velocity being determined externally and not being influenced by monetary policythe money supply determines the value of nominal output which equals final expenditure in the short run. In practice, velocity is not exogenous in the short run, and so the formula does not necessarily imply a stable short-run relationship between the money supply and nominal output.
Colonial economy to s[ edit ] Shipping scene in Salem, Massachusetts, a shipping hub, in the s The colonial economy differed significantly from that of most other regions in that land and natural resources were abundant in America but labor was scarce.
Population growth was responsible for over three-quarters of the economic growth of the British American colonies. The free white population had the highest standard of living in the world.
Under the colonial system Britain put restrictions on the type of products that could be made in the colonies and put restrictions on trade outside the British Empire. Demographics[ edit ] Initial colonization of North America was extremely difficult and the great majority of settlers before died in their first year.
Settlers had to depend on what they could hunt and gather plus what they brought with them and on uncertain shipments of food, tools and supplies until they could build shelters and forts, clear land and grow enough food and build gristmills, sawmills, iron works and blacksmith shops to be self-supporting.
They also had to defend themselves against raids from hostile Indians. After population growth was very rapid due to high birth rates 8 children per family versus 4 in Europe and lower death rates than in Europe, and immigration.
The death rate from diseases, especially malaria, was higher in the warm, humid southern colonies than in cold New England. The higher birth rate was due to better employment opportunities.
Many young adults in Europe delayed marriage for financial reasons. Also there were many servants in Europe who were not permitted to marry. Inthere were an estimated 13, black slaves. The economy[ edit ] The colonial economy of what would become the United States was pre-industrial, primarily characterized by subsistence farming.
Farm households also were engaged in handicraft production, mostly for home consumption, but with some goods sold. The most important agricultural exports were raw and processed feed grains wheat, Indian corn, rice, bread and flour and tobacco.
Dried and salted fish was also a significant export. North Carolina was the leading producer of naval stores, which included turpentine used for lampsrosin candles and soaptar rope and wood preservative and pitch ships' hulls. Another export was potashwhich was derived from hardwood ashes and was used as a fertilizer and for making soap and glass.
The colonies depended on Britain for many finished goods, partly because laws prohibited making many types of finished goods in the colonies. These laws achieved the intended purpose of creating a trade surplus for Britain. The colonial balance trade in goods was heavily in favor of Britain; however, American shippers were able to offset roughly half of the goods trade deficit with revenues earned by shipping between ports within the British Empire.
Wood in Britain was becoming scarce and coke was beginning to be substituted for charcoal; however, coke made inferior iron. Towns were located on or near the coasts or navigable inland waterways. Even on improved roads, which were rare during the colonial period, wagon transport was very expensive.Data extracted on: November 21, Source: U.S.
Bureau of Labor Statistics Note: More data series, including additional geographic areas, are available through the . The U.S. inflation rate by year is the percent change in prices from one year to the next, or year-over-year. The inflation rate responds to each phase of the business monstermanfilm.com first phase is monstermanfilm.com's when growth is positive, with healthy 2 percent inflation.
Dec 14, · Over the past years, the rate of inflation has been much higher and much lower than it is today. And what’s changed even more is the extent to which economists thought they understood why. In economics, inflation is a sustained increase in the price level of goods and services in an economy over a period of time.
When the price level rises, each unit of currency buys fewer goods and services; consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy.
It was one of the shortest and mildest recessions in American economic history.
Panic of created one of the worst and longest depressions in American history, seriously affecting every aspect of the economy and bringing the railroad expansion to a halt. The New York Stock Exchange closed for . Inflation in American History. Posted Wednesday, November 18, Except our own soon Second Civil war over government caused economic and monetary collapse.
And don’t forget cultural collapse caused by the “war” on the economy and the culture called the Welfare and Regulatory State.
The Association of Mature American Citizens.