Inflation

Adaptive Expectations: Understanding Economic Forecasting
An in-depth explanation of adaptive expectations in economics, where future values are calculated based on previous predictions and outcomes. Learn about its significance, models, and practical applications.
Adverse Supply Shock: An Unexpected Shift in Supply
An adverse supply shock is an unexpected reduction in the quantity supplied for any given price, resulting in higher prices and reduced output. This phenomenon often results from natural disasters, diseases, or major political events.
Anticipated Inflation: Understanding Expected Inflation
A comprehensive guide to anticipated inflation, covering historical context, types, key events, explanations, formulas, and more.
Appreciation: Understanding Asset and Currency Value Increases
Explore the concept of appreciation, its significance in finance and economics, historical context, types, and examples. Learn about its applicability in various fields and common related terms.
Augmented Phillips Curve: Inflation and Unemployment Relationship
The Augmented Phillips Curve integrates expectations into the traditional Phillips Curve, explaining the dynamic relationship between inflation and unemployment.
Big Mac Index: Understanding Exchange Rate and Purchasing Power Parity
An in-depth exploration of the Big Mac Index, a light-hearted yet informative tool introduced by The Economist to measure purchasing power parity and assess the real value of currencies.
Bundle of Goods: Understanding Economic Aggregates
A comprehensive exploration of the concept of 'Bundle of Goods,' its historical context, types, importance, applications, examples, and key considerations in economics.
Capacity Utilization: Actual Output as a Percentage of Capacity
Capacity Utilization is the measurement of the actual output produced by a firm, industry, or economy as a percentage of the total potential output. This indicator is essential in understanding the economic health and inflationary pressures in a system.
Capital Appreciation: Understanding Asset Value Increases
Explore the concept of capital appreciation, its historical context, types, key events, mathematical formulas, and its significance in various economic sectors.
COLAs: Cost-of-Living Adjustments
Understanding COLAs: Adjustments to wages or salaries designed to counteract the effects of inflation, ensuring that real wages remain stable over time.
Constant Dollar: Inflation-Adjusted Measure
An in-depth exploration of Constant Dollar, its definition, importance, mathematical representation, examples, and related concepts in economics and finance.
Constant Prices: Prices Adjusted for Inflation
Constant Prices refer to prices that have been adjusted to remove the effects of inflation, using a base year as a reference to enable consistent comparison over time.
Consumer Price Index: Measure of Inflation
The Consumer Price Index (CPI) is a critical economic indicator that measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Consumer Price Index: Measuring Inflation and Economic Health
An in-depth exploration of the Consumer Price Index (CPI), a crucial economic indicator used to measure inflation and inform economic policy decisions.
Consumer Price Index: A Measure of Price Changes
The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services. It is crucial for understanding inflation and the cost of living.
Core Inflation: Essential Economic Indicator
Core Inflation measures the rate of inflation excluding volatile items like food and energy, providing a clearer picture of long-term inflation trends.
Core Inflation: A Measure Excluding Volatile Items
Core Inflation is a measure of inflation excluding volatile items like food and energy prices, aimed at providing a clearer picture of long-term inflation trends.
Cost-of-Living Adjustments (COLA): Periodic changes to fixed benefits to account for inflation
Cost-of-Living Adjustments (COLA) refer to periodic changes made to fixed benefits such as pensions, wages, and Social Security to account for inflation and maintain the recipient's purchasing power.
CPI: Consumer Price Index and Out-of-Pocket Expenses
The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. This entry focuses on its relation to out-of-pocket expenses.
CPI: Consumer Price Index
The Consumer Price Index (CPI) measures the average change in prices over time that consumers pay for a basket of goods and services.
CPIH: CPI including owner-occupiers’ housing costs
CPIH is an inflation measure that includes owner-occupiers' housing costs, providing a comprehensive view of consumer price changes in the economy.
Creeping Inflation: Moderate and Persistent Inflation
Creeping Inflation refers to a state where inflation occurs at moderate rates but persists over long periods. It's commonly observed in many countries and can have significant economic implications.
Crowding Out: Impact on Economic Activities
Understanding the economic phenomenon where increased government spending leads to a decrease in private sector spending, either completely or partially.
Currency Appreciation: Understanding its Impact
Currency Appreciation refers to a rise in the price of a country's currency in terms of foreign currency, affecting trade balance, inflation, and economic dynamics.
Currency Devaluation: An Intentional Lowering of a Currency’s Value
Currency Devaluation is an intentional lowering of a currency’s value within a fixed exchange rate system, which can impact trade, economic growth, and inflation.
Currency Reform: An In-depth Look
Currency reform involves the replacement of an existing currency by a new one, often to address issues such as inflation or to facilitate economic policy adjustments.
Currency Revaluation: Adjusting the Value of a Currency Compared to Other Currencies
Currency revaluation involves adjusting the value of a national currency relative to other currencies. This economic policy can impact trade balances, inflation, and monetary policy.
Current Prices: Measurement of Economic Magnitudes Using Prevailing Prices
Current prices refer to the measurement of economic magnitudes using the prices actually prevailing at any given time. This measure is crucial for economic analysis, as it reflects nominal values and captures price level changes over time.
Current Purchasing Power Accounting: Constant Purchasing Power Accounting
Current Purchasing Power Accounting (CPP accounting) is a form of accounting that measures profit while maintaining the purchasing power of shareholders' capital. This entry delves into the historical context, methodologies, key events, importance, and examples of CPP accounting.
Dear Money: High Interest Rates and Economic Impact
An in-depth look at dear money, a financial term describing high interest rates and their implications on borrowing and economic activities.
Deflation: A Comprehensive Overview
An in-depth exploration of deflation, its historical context, types, key events, mathematical models, importance, applicability, related terms, comparisons, interesting facts, and more.
Deflation Rate: The Percentage Decrease in the Price Level
An in-depth look at the deflation rate, the implications of decreasing price levels, its calculation, historical context, and relevance in economics.
Demand Inflation: Inflation Due to Excess Demand
Demand inflation occurs when inflation is driven by excess demand in the economy. This article provides a detailed overview of demand inflation, including historical context, key events, explanations, mathematical models, examples, and much more.
Devaluation: Economic Strategy and Implications
A comprehensive examination of devaluation, its historical context, mechanisms, impacts on trade and economy, and its relevance in both fixed and floating exchange rate systems.
Disinflation: A Fall in the Rate of Inflation
Comprehensive exploration of Disinflation, its historical context, types, key events, mathematical models, charts, importance, applicability, examples, considerations, and related terms.
Dovish: A Focus on Economic Growth and Reducing Unemployment
Dovish policy makers prioritize economic growth and reducing unemployment over controlling inflation. Learn more about dovish monetary policy, key indicators, and historical impacts.
Economic Indicators: A Comprehensive Guide
An in-depth look at Economic Indicators, their importance, types, key events, examples, and relevance in various fields.
Economic Stability: Ensuring Steady Growth and Low Volatility
Economic Stability refers to a state where an economy experiences consistent growth with low levels of fluctuation in economic variables, promoting overall confidence and sustainability.
Escalator Clause: A Flexible Contractual Agreement
An escalator clause is a provision in a contract that ties the price or wage to be paid to a specified external index or cost metric, helping adjust for changes such as inflation.
Expectations-Augmented Phillips Curve: Analyzing Inflation and Unemployment
An in-depth look at the Expectations-Augmented Phillips Curve, which links wage increases to demand pressure while accounting for expected inflation, revealing complex dynamics between unemployment and inflation.
Expected Inflation: Understanding Future Price Levels
Expected inflation refers to the rate of inflation that individuals, businesses, and investors anticipate over a specific period. It plays a crucial role in economic planning, financial markets, and policy making.
Expenditure-Based Deflator: An Insight into Price Index Calculation
A comprehensive guide to understanding the Expenditure-Based Deflator, its historical context, types, key events, detailed explanations, mathematical models, importance, applicability, examples, and related concepts.
Fiscal Drag: The Subtle Impact of Inflation on Taxation
Exploring the concept of fiscal drag, how inflation affects tax systems under progressive tax regimes, and its economic implications.
Fisher Effect: A Detailed Examination
An in-depth look into the Fisher Effect, its historical context, mathematical formulas, importance in economics, and real-world applications.
Foreign Currency-Denominated Borrowing: Borrowing in Non-Domestic Currency
Foreign Currency-Denominated Borrowing involves acquiring debt in a currency other than the debtor's national currency, often to evade domestic inflation risks and potentially lower borrowing costs.
Franc Fort: Currency as an Inflation Anchor
The Franc Fort policy aimed to control inflation by linking currency values to a low-inflation country. France and Belgium utilized this strategy in the 1980s and early 1990s.
GDP Deflator: Reflects prices of all domestically produced goods and services
The GDP Deflator is an economic metric that shows the change in prices for all of the goods and services produced in an economy. It reflects how much prices have altered over a specific period.
GDP Deflator: Price Index to Measure Inflation and Economic Performance
The GDP Deflator is a price index used to assess the real rise or fall in gross domestic product (GDP) from one year to another by accounting for inflation or deflation. Unlike retail price indices, it considers a broader class of goods.
General Price Index: A Comprehensive Measure of Price Levels
An in-depth exploration of the General Price Index, a vital economic indicator examining the weighted average of prices of a basket of consumer goods and services.
General Price Level: Measure of Purchasing Power
An index that gives a measure of the purchasing power of money. In the UK, the best-known measure is the Retail Price Index; in the USA, it is the Consumer Price Index.
Gross Domestic Product (GDP) Deflator: Measure of Price Inflation in the Economy
The GDP Deflator is a key economic metric that measures the level of price inflation across all goods and services in an economy. It helps economists and policymakers understand inflation trends and the real growth of an economy.
Headline Inflation: Understanding the Broad Measure of Inflation
Headline inflation is a measure of the total inflation within an economy, including all goods and services, such as food and energy prices, which are more volatile.
Historical Cost: Accounting Value Based on Initial Purchase
The historical cost principle involves valuing assets based on their original purchase prices. While it utilizes actual market transaction prices, it can understate asset values and depreciation allowances during inflationary periods, leading to potential overestimation of profits.
Hyperinflation: Economic Phenomenon Where Currency Becomes Worthless
Hyperinflation is a severe economic condition where inflation rates are extraordinarily high, rendering money virtually worthless and destabilizing the economy.
Imported Inflation: Understanding and Mitigation
An in-depth exploration of imported inflation, including its causes, effects, types, key events, mathematical models, and mitigation strategies.
Index-Linked Gilts: Understanding Inflation-Protected Government Bonds
An in-depth look at Index-Linked Gilts, government bonds with interest and principal adjusted for inflation, including their historical context, types, key events, and more.
Indexation: Adjusting for Inflation in Economic Variables
Comprehensive coverage of indexation, its history, types, and applications in finance, economics, and taxation. Explore the mathematical formulas, historical context, real-life examples, and more.
Indexed for Inflation: Adjustments Made to Account for Changes in the Cost of Living
An in-depth look at the concept of indexing for inflation, which involves adjustments to amounts to account for changes in the cost of living, with applications in economics, finance, and everyday financial planning.
Inflation: Understanding Economic Price Changes
Inflation, characterized by a persistent rise in nominal prices, affects economies globally. This article provides comprehensive coverage of inflation types, causes, impacts, historical instances, measurement indices, and related concepts.
Inflation Accounting: Adapting Financial Reporting to Inflation
Inflation accounting is an accounting method that accounts for the fluctuating value of money due to inflation, ensuring that financial reports reflect the true financial performance and position of an organization.
Inflation Accounting: Comprehensive Guide
Understanding the practice of Inflation Accounting in producing meaningful company accounts under inflationary conditions, its importance, types, methods, and key considerations.
Inflation Control: Strategies to Manage Price Levels
Comprehensive overview of techniques used to manage and regulate the rate of inflation within an economy, ensuring stable price levels for goods and services.
Inflation Rate: Understanding the Rate of Increase in Price Levels
The inflation rate is a crucial economic indicator measuring the rate of increase of a specified price index over a period. This article covers the concept, historical context, methods of calculation, types, key events, importance, and much more.
Inflation Targeting: A Comprehensive Overview
A detailed examination of Inflation Targeting, its history, types, key events, mathematical models, importance, examples, considerations, related terms, and more.
Inflation Tax: Understanding Its Impact and Mechanisms
Inflation Tax refers to the loss in the real value of money and government debt due to inflation, impacting the purchasing power of money balances and the real value of government debt.
Inflation-Indexed Bonds: Bonds Adjusted for Inflation
Inflation-Indexed Bonds are a type of bond where the principal and interest payments are adjusted for inflation, providing a hedge against the eroding effect of inflation on returns.
Inflation-Linked Bonds: Protecting Against Purchasing Power Erosion
Inflation-linked bonds, also known as Treasury Inflation-Protected Securities (TIPS) in the United States, are a type of bond designed to help investors guard against inflation by having their interest payments and principal value adjust with inflation rates.
Inflationary Gap: Understanding Economic Overheating
The inflationary gap represents the excess of actual economic activity over the level at the non-accelerating inflation rate of unemployment, leading to demand inflation.
Internal Balance: Economic Equilibrium and Stability
A comprehensive article about Internal Balance, explaining its importance, types, historical context, models, and how it contrasts with External Balance.
Long-Run Phillips Curve: Relationship Between Inflation and Unemployment
A curve depicting the long-run relation between inflation and unemployment, showing the interplay of expectations and economic performance over the long-term.
Macro-Economic Analysis: Understanding the Economy as a Whole
A comprehensive study of macro-economic variables such as inflation, GDP, and unemployment rates to understand and analyze the economy at a national or global level.
Macroeconomics: The Big Picture of Economic Activity
An in-depth exploration of Macroeconomics, its key concepts, historical context, models, importance, and applications in understanding the economy as a whole.
Menu Costs: Costs of Changing Prices
An in-depth analysis of Menu Costs, its implications, historical context, and relevance in economics.
Menu Costs: Understanding the Costs of Revising Prices
An in-depth look at menu costs, their historical context, significance in economics, and their impact on price stickiness and market dynamics.
Menu Costs of Inflation: Cost of Revising Prices
An in-depth analysis of the part of the real cost of inflation attributed to the cost of revising prices, known as menu costs of inflation.
Misery Index: Measuring Economic Performance and Social Cost
An index that measures overall economic performance by adding the unemployment rate and inflation rate, reflecting economic and social costs. Introduced by Arthur Okun in the 1960s and later expanded by Robert Barro.
Monetarism: An Economic Theory of Money Supply and Market Dynamics
Monetarism is an economic theory emphasizing the role of the money supply in determining economic stability and growth. It argues that a steady, controlled increase in money supply aligns with the natural growth of aggregate supply and inflation targets.
Monetary Control: The Framework of Economic Stability
Monetary Control refers to the various strategies and tools utilized by a country's central bank to regulate the money supply and interest rates to achieve economic goals like controlling inflation, managing unemployment, and ensuring financial stability.
Monetary Economics: Understanding Monetary Policy and Its Impacts
A comprehensive study of the conduct and institutions of monetary policy and their effects on key economic variables such as employment, output, interest rates, prices, consumption, and investment decisions.

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