MODULE 33: Types of Inflation, Disinflation, and Deflation

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MODULE 33

Types of Inflation, Disinflation, and Deflation

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33Types of Inflation, Disinflation, and Deflation

In this Module, you will learn to:

Use the classical model of the price level
Explain why efforts to collect an inflation tax by printing money can lead to high rates of inflation and even hyperinflation
Define the types of inflation: cost-push and demand-pull

We have seen that monetary policy affects economic welfare in the short-run. Let’s take a closer look at two phenomena that involve monetary policy: inflation and deflation.