Problem
1. What is hyperinflation? What has been the main cause of hyperinflation episodes?
2. What is the Fisher effect? What is its significance?
3. What are the costs of anticipated and unanticipated inflation?
4. In the movie The Count of Monte Cristo (2002) a scene shows the main character paying for an estate in France using a wagon full of silver and gold coins. During the 1800s it was not common for people to pay for a house using this method, but gold and silver pieces were quite extensively used as a mean of payment.
a) What method of payment do you think was most probably used to buy a house, even in the 1800s?
b) Why do you think we do not use silver and gold coins as the preferred mean of payment anymore?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.