Why Did Some of the Formerly Communist Countries of Eastern

question 72

Essay

Why did some of the formerly Communist countries of Eastern Europe have inflation rates over 100%,while others didn't? Which factor was more important in explaining the differing inflation rates,real money demand or nominal money supply? Why did the countries with high inflation rates allow inflation to get so high?

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Definitions:

Gum Disease

A set of inflammatory conditions affecting the tissues surrounding the teeth, which can lead to loss of teeth if not treated.

High-Frequency Sounds

Sounds that have a high pitch, typically those with a frequency of 2,000 Hz (Hertz) or higher, often beyond the range of human hearing as age increases.

Hearing Aid

A device designed to improve hearing by making sound audible to a person with hearing loss.

Adapt

The process of adjusting to new conditions or environments.