Economics

Planning a budget is essential to ensuring your income is used efficiently. It helps cut down on nnecessary spending and enables you to use your money to purchase the things you need—or want—most.

It’s easy to get started your personal money management

Money originates in one of two ways. One way is by depositing gold, the value of which is credited to the depositor on a bank account. However, the bulk of the nation's "purchasing power" stems from credit extended by banks,! be it by loaning funds or by purchasing securities (bonds).

One would be hard pressed these days to find any defenders of the sort of full-blown economic plannification characteristic of the late Soviet Union and other Communist states, and with good reason given their economic inefficiency. The departure from plannification is, of course, celebrated by neo-liberal champions of capitalism.

It may be one of the most familiar words in economics. Inflation has plunged countries into long periods of instability. Central bankers often aspire to be known as inflation hawks. Politicians have won elections with promises to combat inflation, only to lose power after failing to do so.

Galloping and creeping inflation

In the summer of 1923, the German inflation was rapidly heading toward the grand finale: total repudiation of the currency. As an instructor in a Berlin college, this writer drew a monthly salary that had been raised from an inflated 10,000 marks or so in early 1922 to 10,000,000 marks by July, 1923, and the whole amount was being paid twice a month; then, once every week; then once each day.