Please enable JavaScript.
Coggle requires JavaScript to display documents.
INFLATION - Coggle Diagram
INFLATION
Causes
Cost-push inflation
Increases in cost of production
Wage-price spiral
Demand - pull inflation
Increases in AD with no increases in AS
Increase in money supply
Issue money (monetarists)
Deflation
Fall of prices
Good deflation
Prices fall and GDP increases
Bad deflation
Prices fall and GDP decreases
Types
Creeping inflation (low rate)
Hyperinflation (inflation rate higher that 500%)
Argentina late 80s
Germany
Zimbabwe
Venezuela
Money values vs Real values
Real values have been adjusted to inflation
Money values are values operating at the time
Definition
Rise of prices and money looses its value
Disinflation
Inflation rate falls (from 8% to 5%), prices still rise
CPI
To measure inflation
Consequences ?
