Hoarding (economics) in the context of "Inflation rate"

In economics, inflation is an increase in the average price of goods and services in terms of money. This increase is measured using a price index, typically a consumer price index (CPI). When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduction in the purchasing power of money. The opposite of CPI inflation is deflation, a decrease in the general price level of goods and services. The common measure of inflation is the inflation rate, the annualized percentage change in a general price index.

Changes in inflation are widely attributed to fluctuations in real demand for goods and services (also known as demand shocks, including changes in fiscal or monetary policy), changes in available supplies such as during energy crises (also known as supply shocks), or changes in inflation expectations, which may be self-fulfilling. Moderate inflation affects economies in both positive and negative ways. The negative effects would include an increase in the opportunity cost of holding money; uncertainty over future inflation, which may discourage investment and savings; and, if inflation were rapid enough, shortages of goods as consumers begin hoarding out of concern that prices will increase in the future. Positive effects include reducing unemployment due to nominal wage rigidity, allowing the central bank greater freedom in carrying out monetary policy, encouraging loans and investment instead of money hoarding, and avoiding the inefficiencies associated with deflation.

Executive Order 6102 is an executive order signed on April 5, 1933, by US President Franklin D. Roosevelt forbidding "the hoarding of gold coin, gold bullion, and gold certificates within the continental United States". The executive order was made under the authority of the Trading with the Enemy Act of 1917, as amended by the Emergency Banking Relief Act in March 1933.

At the time and in the years that followed, this policy was highly controversial and faced criticism from those who asserted it was "completely immoral" and "a flagrant violation of the solemn promises made in the Gold Standard Act of 1900" and promises made to purchasers of Liberty and Victory Loans during World War I. The critics also claimed this executive order would lead to an inflation of supply of credit and currency, which would cause a fraudulent economic boom which would inevitably bust and result in a depression.

In the early 14th century, the Delhi Sultanate ruler Alauddin Khalji (reigned 1296–1316) instituted price controls and related reforms in his empire. He fixed the prices for a wide range of goods, including grains, cloth, slaves and animals. He banned hoarding and regrating, appointed supervisors and spies to ensure compliance with the regulations, and severely punished the violators. The reforms were implemented in the capital Delhi, and possibly, other areas of the Sultanate.

Alauddin's courtier Amir Khusrau states that Alauddin's objective was the welfare of the general public. However, Ziauddin Barani (c. 1357), the main source of information about the reforms, states that the Sultan's objective was to subjugate the Hindus and to maintain an unprecedentedly large army (the low prices would make low salaries acceptable for the soldiers). The reforms were revoked shortly after Alauddin's death, by his son Qutbuddin Mubarak Shah.