Tuesday, January 1, 2019

As a currency's value decreases, it requires more money to buy a given item. As currency value falls, prices rise. Rising prices and the falling value of money is known as inflation.


14) When currency is printed in greater amounts, its relative value decreases. As a currency's value decreases, it requires more money to buy a given item. As currency value falls, prices rise. Rising prices and the falling value of money is known as inflation.
2:27 PM - 1 Jan 2019
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Robby BallTweet text

    1. New conversation
    1.  6 hours ago
      15) Over the last century, the value of the dollar (its purchasing power) has decreased dramatically.
      16 replies156 retweets431 likes




    2.  5 hours ago
      16) There are a number of reasons why the dollar has decreased in value. It isn't only because more dollars have been printed. But it's a necessary point to make because the next discussion will require us to understand the relationship of an object's scarcity to its value.
      5 replies92 retweets324 likes




    3.  5 hours ago
      17) The Continental paper money that was issued during the Revolutionary War (1775-1783), was not backed by a physical asset such as gold or silver. It lost all value shortly after the war because people stopped accepting it as payment for goods and services.
      5 replies74 retweets276 likes




    4.  5 hours ago
      18) There were no less than six different types of dollar bills in circulation following the revolution. All these paper currencies were convertible to gold “on demand”, which meant that one could walk into a bank and be given gold for the value of their dollars.
      1 reply79 retweets280 likes




    5.  5 hours ago
      19) This, by the way, was the original "gold standard" as it was used by the nation's founders and which was implemented successfully over most of the next century.
      2 replies74 retweets281 likes




    6.  5 hours ago
      20) During the Civil War, (1862) because thousands of troops had to be paid, ships and artillery had to be built and the treasury did not have adequate gold supplies on hand, President Lincoln issued a paper dollar that was not fully exchangeable for gold.
      3 replies73 retweets262 likes




    7.  5 hours ago
      21) The new Federal Dollars were printed with green ink, and became known as “greenbacks" or "funny money."
      3 replies80 retweets288 likes




    8.  5 hours ago
      22) The value of greenbacks fluctuated wildly with military wins and losses because this form of currency wasn't tied to the price of gold. The Inflation rate for greenbacks soared as high as 75%.
      4 replies78 retweets307 likes




    9.  5 hours ago
      23) As a lesson in how demand affects the value of non-commodity backed currency, Confederate dollars, that were also issued during this period, followed the fate of the Confederacy and were worthless by the end of the war.
      14 replies98 retweets343 likes




    10.  4 hours ago
      24) Officially, the US didn't begin with a gold standard, but with a "bimetallic" standard. Both gold and silver were used to define the monetary unit. The first coinage act defined the dollar as 371.25 grains of pure silver minted with alloy into a coin of 416 grains.
      3 replies98 retweets250 likes




    11.  4 hours ago
      25) Gold coins were also authorized in denominations of $10 (eagle) and $2.50 (quarter-eagle). The ratio of silver to gold in a given denomination was 15 to 1. This document provides a nice history of the gold standard.
      2 replies85 retweets232 likes




    12.  4 hours ago
      26) Following the Civil War, America went back to using money exclusively backed by either gold or silver. (But Lincoln's greenback seemed to put into the conscience of Americans the idea that paper currency not backed by gold or silver was an acceptable form of money.)
Posted by Robby Ball at 5:23 PM