Transcript

00:01 |

Initial credits
00:06 |

Introduction
00:49 |

Hugo Maul
- Rescue of the historic economic memory
  - Inflation episode of 1990 in Guatemala
  - Quotes Milton Friedman
- Brief history of world inflation
  - Hyperinflation in Weimar Republic (1918-1924)
  - Hyperinflation in Zimbabwe (2007-2008)
  - Monthly rates of the highest inflations in history
- Brief history of Guatemala in the late 1980's
  - Total government spending
  - Fiscal deficit
  - Government debt to the central bank
  - Growth in the issuance of money
  - Annual inflation rate
  - Weak fiscal discipline
  - Historic series of annual inflation rates
- Current economic and political situation
16:39 |

Jerry L. Jordan
- Principle of opportunity cost
- Logic of government budgets
- Natural development of market economies
- Role of central banks
- Propositions derived from the teachings of Milton Friedman
  - Moral hazard in financial systems
  - Economic situation of Yugoslavia in the early 1990's
  - Burden of taxation
  - Deficit financing
  - Institutional limitations
  - Information system in an economy
  - Cost of inflation
  - Social effects of changes in the value of money
  - Stable money in a market economy
  - Veracity of interest rates and price changes
  - Toxic monetary policies implemented by government
39:09 |

Jose Raúl González
- Quotes Vladimir Ilich Lenin
- Quotes John Maynard Keynes
- Quotes Milton Friedman
- Miracle in 1994
- Quotes Article 133 of the Political Constitution of the Republic of Guatemala
- Team proposing constitutional changes
  - Quotes Fernando Carrera
  - Quotes Edgar Gutiérrez
  - New formulas or old tricks learned from the crisis
  - Inflation and monetary supplies in the United States
  - Fiscal deficit sources
- Guatemala's inflation rate and foreign debt
- Fiscal deficit financed by public debt
- Fiscal deficit in regards to Gross Domestic Product (GDP)
- Conclusions
- Quotes Ayn Rand
01:01:24 |

Question and answer period
- What are your thoughts regarding the activist role that central banks are trying to have in countries like the United States?
  - Problems with central bank activism
  - Greek government-debt crisis
- Central bank standards
- Financial instability in Latin America
- Credibility of central banks
- Role of central banks and their independence
- Capital standard of central banks
- Misinformation of the Federal Reserve System towards the public in the United States
  - Dot-com bubble mistakes
  - Greenspan put
- What are your inflationary expectations for the next five to ten years in the United States?
01:19:47 |

Final words
01:20:17 |

Final credits

The Ghost of Inflation: The Threat of Going Back

New Media | 30 de julio de 2012 | Vistas: 112

Inflation has been a powerful and destructive economic phenomenon in today's economy. It has caused appalling effects in growth and development in all countries that have endured it. Hugo Maul talks about the evolution of the economic history of Guatemala, and explains how inflation played an important part in the development. He describes the negative relationship between government and the central bank.

In the midst of possible changes to the Political Constitution of the Republic of Guatemala, both Hugo Maul and José Raúl González, elaborate on the significance of the controls and restrictions previously established in the legal context. González also talks about several of the most common ways in which governments camouflage inflation with deficit and different taxes. On the same line, Jerry L. Jordan speaks about the teachings of Milton Friedman in regards to this problem and stresses the need of having clear information systems for a country’s economy.