What is a quick increase in prices, inflation, people knew from the very beginning of commodity-money relations. And probably even before. Even during the existence of natural metabolism. Of course, the very concept of inflation was born several millennia later, but the inability to feed their family was familiar to humanity since time immemorial. If you believe the research of the American historian David Fisher, only in the last thousand years and only in Europe there were four large inflation waves.
For the first time, it arose with an increase in the population with the previous level of food production. At the same time, wages have decreased significantly, because the number of workers grew in paramilitary to the growth of the population. So, there was not so much money for buying food in every family.
In the fourteenth century there were hunger and plague. They sharply reduced the population. In addition, fearing for the safety of their property, many hid, buried gold and silver. This led to a lack of funds and, as a result, to a decrease in price level.
But at the end of the fifteenth century, precious metals began to be imported into Europe. Such an opportunity appeared after the opening of America. Coins again began to cast from gold and silver and prices began to rise again. Now at home, land plots began to be considered reliable protection against inflation. Many have a desire to get an education. After all, the industry developed, and qualified artisans were in great demand, while earning well.
The third wave of inflation began in 1720. All new gold deposits were opened in North America, and by the end of the century its volume in Europe doubled. In addition, wars began. The rulers in order to save reduced the number of precious metals in coins, and finally came to the release of paper money. There is nothing surprising in the fact that under these conditions it simply took off, it became impossible to buy food, which caused a large number of riots and upheavals.
In the twenties of the twentieth century, the fourth wave took place. It was already hyperinflation. Even real estate could not be considered reliable protection. Owners of profitable houses did not know how to predict the level of price growth, which means that it could not take it into account in the required rent. It had to be constantly raised. And with this, in turn, tenants did not agree. Which, however, is quite natural. Their increase in their prices also concerned. Cases of illegal settlement in apartments without payment have become ordinary. Real estate owners had a hard time. Tenants paid rental money, but utility bills, artisans demanded payment with gold, which there was nowhere to take from. Many had to part with their property, which at other times brought a stable income. Money quickly lost their price, especially paper. Trade merchants began to appear on the streets, who did not sell their goods from the trays for paper money and coins, but for jewelry, jewelry.
