Inflation and deflation are part and parcel of life of people living in the era of paper money. Most of us feel that inflation (or deflation is very rare) it was really there, but not easily understand what's being inflation and deflation that?, How the establishment or when the birth etc..
Well to explain the problems of inflation and deflation is in an interesting to the public, even since they were in school - European Central Bank (ECB) have a creative idea - that is make a short animated film about 5 minutes which tells the story of two monsters of Monster Inflation and Deflation Monster. If your internet access is good enough, you can watch it directly by clicking this link.
Not limited to animated films, the ECB also prepared a PDF document can be downloaded for teachers and the community for teaching materials or socialization problem is inflation and deflation.
At first glance this animated film looks fine and quite interesting to watch. But my own view these animated films feel so stupid, or a film which deliberately ignorant audience.
In this animated film is depicted two students who were listening to a lesson about the price control from the teacher, then suddenly them in front of a bakery bread prices continue to rise.
Amid the panic rising price of bread was, there came the monster of inflation that distribute money freely. The more money distributed by the monster of inflation - the higher the price of bread.
End of story might be expected that the filmmaker was the champion. So when two students came to visit the office of the ECB; by his manager European Central Bank explained that the ECB is in charge of maintaining price stability.
According to the manager, the people who are represented by two students will no longer need to worry - because the Monster Inflation and Deflation Monster both have been arrested by the ECB. Both reduced and put into a jar ... like a ghost hunter story on our television.
Why do I feel so stupid watching this animation?. Because the ECB is only told from one side of the figure himself into a conquering hero Monster Monster Inflation and Deflation.
They do not talk frankly to the people who Monsters Inflation and Deflation Monster is real?. Who can print money and increase the supply of excess money into the community?, Or lowered by controlling interest rates? Is not this the ECB also do it?.
Or in other words, if the ECB was not actually the hero honesty and character of these monsters is the same creature that is yes ECB-ECB also?.
If according to George Cooper author of famous book "The Origin of Financial Crises" (Vintage Book, New York, Dec. 2008), figures are not the ECB's own monsters - but the ECB's cousin! - Namely the governments that have contributed to the ECB. The argument he is, not the ECB is printing money - but his government who continue to print money so that the inflated inflation-then that same government asked the ECB to control inflation that created this.
According to Cooper's more, even these monsters have a date of birth is August 15, 1971 - when President Nixon announced an end to the era of gold reserves to each printing of paper money - and the start of the era of pure fiat money. In a pure fiat money regime adopted throughout the world today, the government can print money without having to think about how many gold reserves at their disposal. In the era of pure fiat money here - monsters of rampant inflation around the world.
What the ECB really good with trying to explain it easily to the public; less to live his honesty in telling the lives of many people into this. Allaah knows best.
