PPT-The Cost of Inflation Unanticipated Inflation

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. 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 . Mankiw. M. acroeconomics. Principles . of. Sixth Edition. 11. In this chapter, . look for the answers to these questions:. What is the Consumer Price Index (CPI)? . How is it calculated? What’s it used for?. Outline. The Consumer Price Index (CPI). What is inflation?. The CPI and the Inflation Rate. Adjusting the money (nominal) wage for inflation using the CPI. The Costs of Inflation. Is the CPI accurate?.  . 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. INFLATION OR DEFLATION,. TELL ME IF YOU CAN…. WILL WE BE ZIMBABWE OR. WILL WE BE JAPAN?. INFLATION IS A GENERAL INCREASE IN PRICES OVER TIME, OR A GENERAL DECREASE IN THE VALUE OF MONEY. “I JUST BOUGHT FOUR TIRES. 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 . Price Level & Real Income. As long as wages rise with price levels, inflation doesn’t cause harm standard of living. Real . Wage = . Wage . rate .  100. Price index. Real . Income = . Income . 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?. 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. . Inflation is a situation in which the general price level rises or the value of money falls.. Types of Inflation:. On the basis of the rate of increase in price level we have three types of inflation,. MEANING OF INFLATION.  .  Inflation is commonly understood as a situation of substantial, and general increase in the level of prices of goods and services in an economy and a consequent fall in the value of money over a period of time. .