Tuesday, May 15, 2012

Inflation

Inflation

Inflation

Economics Revision Article Series

Authors

Inflation occurs when the general level of prices is rising.
 
The rate of inflation is measured as the rate of change of the economy wide price levels (say consumer price index, or CPI).
 
The most widely used measure of inflation in USA is the consumer price index (CPI).
 
In general unanticipated inflation redistributes wealth from creditors to debtors.
 
when society takes steps to lower inflation, the real costs of such steps in terms of lower output nad employment can be painful.

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