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Other economic concepts related to inflation include: deflation – a fall in the general price level; [17] disinflation – a decrease in the rate of inflation; [18] hyperinflation – an out-of-control inflationary spiral; [19] stagflation – a combination of inflation, slow economic growth and high unemployment; [20] reflation – an ...
The inflationary gap between the two is the largest it's been since the 1970s. Skip to main content. Sign in. Mail. 24/7 Help. For premium support please call: ... Business. Elections. Entertainment.
Demand-pull inflation occurs when aggregate demand in an economy is more than aggregate supply.It involves inflation rising as real gross domestic product rises and unemployment falls, as the economy moves along the Phillips curve.
That is, the rule produces a relatively high real interest rate (a "tight" monetary policy) when inflation is above its target or when output is above its full-employment level, in order to reduce inflationary pressure. It recommends a relatively low real interest rate ("easy" monetary policy) in the opposite situation, to stimulate output.
After a hot December jobs report pared back investor's hopes for interest rate cuts in 2025, two key inflation readings will add to the discussion in the week ahead.
Trend of monthly inflation rate in Italy, from 1962 to February 2022. In macroeconomics, a wage-price spiral (also called a wage/price spiral or price/wage spiral) is a proposed explanation for inflation, in which wage increases cause price increases which in turn cause wage increases, in a positive feedback loop. [1]
Volcker is often credited with having stopped at least the inflationary side of stagflation, [citation needed] although the American economy dipped into a recession with the unemployment rate peaking at 10.4% in February 1983. [43] Economic recovery began in 1983. Both fiscal stimulus and money supply growth were policy at this time.
The introduction of inflationary expectations into the equation implies that actual inflation can feed back into inflationary expectations and thus cause further inflation. The late economist James Tobin dubbed the last term "inflationary inertia", because in the current period, inflation exists which represents an inflationary impulse left ...