Essays on Inflation

Inverse Relationship between Inflation and Unemployment There exists an inverse relationship between inflation and unemployment in the short run. In economics, this relationship is referred to as Philip's curve. However, it is not a permanent tradeoff and ceases to exist in the long run. Policy makers have a tough choice to...

Inflation tax is the financial loss of value incurred by a holder of cash. For example, if you hold a $1000 bill for one year, then it will purchase on what $980 would have bought a year ago. Inasmuch as excess bank reserves attract nominal interest, the value is still...

Money plays a significant role in the economy. The purposes of money include as medium of exchange where money is used in exchange for goods and services. Money is also used as measures of value where it acts as a common denominator permitting every good or service to be priced...

Deflation and its Positive Effects Deflation is both a negative and a positive thing. Some of the positive effects of deflation include the fact that it reduces the burden of private and private debt. It also enables banks to adjust and control the interest rates of a product to stabilize the...

a) Percentage change in the price of food and clothing for the 2004 and 2005 period. Percentage change in the price of food Change in food price $12-$8= $4  Percentage change=  X100%                                  = 50% The price of food between the years 2004 and 2005 changed by 50% Percentage change in clothing...

Inflation in Venezuela: Causes and Consequences Inflation is defined as a prolonged increase in the overall price level of goods and services offered by a specific economy. It is commonly reported as a percentage per year, however monthly and quarterly numbers are also available. In general, when there is inflation, the...

Inflation targeting is a monetary policy framework in which central banks set an explicit inflation rate and announce it publicly. This has advantages and disadvantages, which will be described in the paper. The ability to reconcile predictability and expectations is one of the key benefits of inflation targeting. This means that...

The United States' Inflation Rate and Factors Affecting it The United States' inflation rate is currently low, resulting in slow economic development. Low inflation in the United States can be attributed to a variety of factors, including consumer caution. Another reason is that numerous companies and businesses have similarly limited their...

Nikos Kazantzakis is a controversial figure from the twentieth century. He is known for his inventiveness, political inclinations, and convictions, all of which contribute to his greatness as a philosopher and thinker. As a result, his reputation as a Greek philosopher has been compared to that of other great Greek...

Inflation and Its Factors Inflation is the general trend in the cost of goods and services. However, it can be distorted by various factors. Whether there is a demand for products or a supply, consumers can be hit by higher prices in either direction. As a result, policymakers often focus on...