ENSURING PRICE STABILITY Chapter 12

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Presentation transcript:

ENSURING PRICE STABILITY Chapter 12 Matakuliah : F0882 - Economic Analysis Tahun : 2009 ENSURING PRICE STABILITY Chapter 12

Learning Outcomes Definition and Impact of Inflation Modern Inflation Theory Dilemmas of Anti-Inflation Policy Bina Nusantara University

Inflation Is a Fundamental Constraint on Economic Policy

English Price Level and Real Wage, 1264-2002 (1270 = 100)

Consumer Prices in the United States, 1776-2003

Inflation Has Remained Low and Stable in Recent Years

Money and Hyperinflation in Germany, 1922-1924

Demand-Pull Inflation Occurs When Too Much Spending Chases Too Few Goods

An Upward Spiral of Prices and Wages Occurs When Aggregate Supply and Demand Shift Up Together

The Short-Run Phillips Curve Depicts the Tradeoff between Inflation and Unemployment

The Shifting Phillips Curve

Actual Unemployment Rate and NAIRU

Actual and Predicted Inflation, 1995-1999