PPT-Module 14 Inflation What you will

learn in this Module The economic costs of inflation How inflation creates winners and losers Why policy makers try to maintain a stable rate of inflation The difference between real and nominal values of income wages and interest rates. May 2015. Prospects for inflation. Chart 5.1 . CPI inflation projection based on market interest rate expectations and £375 billion purchased assets. Chart 5.2 . CPI inflation projection in . February . August 2015. Costs and prices. Chart 4.1. CPI inflation expected to remain around zero over the next few months. Bank staff projection for near-term CPI inflation. (a. ). (. a) The red diamonds show Bank staff’s central projection for CPI inflation in April, May and June 2015 at the time of the May .  . Jo van den Brand, Chris Van Den . Broeck. , . Tjonnie. Li. Nikhef. : April 23, 2010. Horizon problem, flatness problem, missing exotic particles. Horizon. : largest distance over which influences can have travelled in order to reach an observer: visible Universe of this observer. Maritta Paloviita and Matti Viren. Bank of Finland and . University. of Turku . Basic idea. The . basic idea . is . an attempt to see whether the Phillips curve has shifted due to the  EMU (better anchoring of expectations . History and Present Status. . Motivated by . the book. :. Breakthrough Beyond the Edge of the World. Valery . Rubakov. Alexei . Starobinsky. Andrei . Linde. Vyacheslav. . Mukhanov. Vladimir . Lukash. Module 35. What You Will Learn in this Module. Explain why . classical macroeconomics wasn’t adequate for the problems posed by the Great Depression. Discuss how . Keynes and the experience of the Great Depression legitimized . To understand what . inflation is. To identify how . inflation might . affect businesses. To evaluate how businesses might respond to . inflation. Starter: Find out how much the average salary was in . History and Present Status. . Motivated by . the book. :. Breakthrough Beyond the Edge of the World. Valery . Rubakov. Alexei . Starobinsky. Andrei . Linde. Vyacheslav. . Mukhanov. Vladimir . Lukash. Unanticipated inflation – some people are hurt; some people gain. . For example, borrowers are helped by unanticipated inflation while lenders are hurt. . However, even anticipated inflation results in costs for the economy.. Payback periods. Jung-woo Sohn (. jzs177@psu.edu. ). College of Information Sciences and Technology. Penn . State University. Announcements. Midterm . exam #1:. October 9. th. , Thursday class . time. Inflation – a general increase in the price level. Deflation – a general decrease in the price level. Hyperinflation – extraordinarily high inflation. (Germany 1923 – prices doubled roughly every 2 days). The price level is the weighted average of prices. A decrease in money’s purchasing power. When the supply of money is growing faster than the production of goods and services.. Inflation…what is it?. Jamie Bock . (Caltech/JPL). PhysPAG. Meeting, . HEAD . @ . Chicago. . 19 August 2014. 2. Testing Inflation with CMB Polarization. Key Inflationary Observables. . First Definitive CMB Result. Nearly scale-invariant fluctuations. Alexander Klemm. “The views expressed in this presentation are of the authors and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.”. Inflation and Taxation.