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Inflation Essay

Essay by   •  August 6, 2011  •  Essay  •  491 Words (2 Pages)  •  1,924 Views

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Another way to look at inflation is that it is an increase of the quantity of money in relation to the trade of goods in a society. Inflation is a global phenomenon of the twentieth century, particularly the post World War II era.

Fortunately, inflation is a stoppable process unless it has gone too far. There exist several methods that can be implemented to stop inflation. The Federal Reserve of the United States influences inflation rates by implementing different monetary policies, and by setting bank interest rates. Generally, Central (or National) Banks all over the world fight inflation by decreasing money supply, and by setting high interest rates. In addition, governments can institute wage and price controls (referred to as income policies) to fight excessive inflation rates. However, this method has several negative outcomes; price control distorts the overall functioning of nation's economy because it encourages decreases in products' quality, shortages, etc.

In general, inflation is a natural phenomenon, which a healthy economic system must experience at all times. Zero inflation rate, as well as too high inflation rates, are, however, harmful to an economy. The main sign of inflation is the increase of prices, which is in the majority of cases caused by the increase in money supply. Government is the only entity that is responsible for inflation, and it can control inflation rates by imposing specific policiesThe word money laundering, according to the myth, is derived from Al Capone's

practice of using a string of coin-operated launderettes in Chicago to disguise

his revenues from gambling, prostitution and protection rackets. It's a nice

story but not true, money laundering is so called because it perfectly describes

the process of removing the stains and smells which money acquires when

criminals earn it.

In this report I will go on to discuss the topic of money laundering in the

following order; firstly, I will begin by explaining what is money laundering?,

why it is done?, and how it is done? I will then go on to explain the effects

of money laundering and the institutions/organisations that are at risk from

these activities. I will also be discussing the current situation in the UK

regarding money laundering and whether anything can be done to prevent or

restrict laundering activities, and will then go on to conclude my findings.

Money laundering is the process by

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