Demographics are shifting. The baby boom generation that helped push borrowing costs down is exiting the workforce—resulting in a smaller supply of savings. Fracturing relations between Washington and Beijing, and a rebalancing of China’s economy, mean the flow of Chinese savings across the Pacific into Treasuries has come to an end. Blaug, Mark (March 27, 1997). Economic Theory in Retrospect. Cambridge University Press. p.129. ISBN 978-0-521-57701-4. ...this was the cause of inflation, or, to use the language of the day, 'the depreciation of banknotes.'

Mansa Musa". May 24, 2006. Archived from the original on May 24, 2006 . Retrieved November 19, 2023. During the 1980s a group of researchers named new Keynesians emerged who accepted many originally non-Keynesian concepts like the importance of monetary policy, the existence of a natural level of unemployment and the incorporation of rational expectations formation as a reasonable benchmark. At the same time they believed, like Keynes did, that various market imperfections in different markets like labour markets and financial markets were also important to study to understand both inflation generation and business cycles. [10] :533–534 During the 1980s and 1990s, there were often heated intellectual debates between new Keynesians and new classicals, but by the 2000s, a synthesis gradually emerged. The result has been called the new Keynesian model, [10] :535 the " new neoclassical synthesis" [64] [65] or simply the "new consensus" model. [64] Current consensus [ edit ] Abel, Andrew B.; Bernanke, Ben S.; Croushore, Dean (2005). Macroeconomics (5thed.). Pearson. ISBN 978-0-32119963-8. Measurement of inflation is discussed in Ch. 2, pp.45–50; Money growth & Inflation in Ch. 7, pp.266–269; Keynesian business cycles and inflation in Ch. 9, pp.308–348.

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West End landlord Shaftesbury Capital defies the High Street gloom as it revels in Christmas sales lift GDP deflator is a measure of the price of all the goods and services included in gross domestic product (GDP). The US Commerce Department publishes a deflator series for US GDP, defined as its nominal GDP measure divided by its real GDP measure.

Alexander the Great's conquest of the Persian Empire in 330 BCE was followed by one of the earliest documented inflation periods in the ancient world. [19] Rapid increases in the quantity of money or in the overall money supply have occurred in many different societies throughout history, changing with different forms of money used. [23] [24] For instance, when silver was used as currency, the government could collect silver coins, melt them down, mix them with other, less valuable metals such as copper or lead and reissue them at the same nominal value, a process known as debasement. At the ascent of Nero as Roman emperor in AD 54, the denarius contained more than 90% silver, but by the 270s hardly any silver was left. By diluting the silver with other metals, the government could issue more coins without increasing the amount of silver used to make them. When the cost of each coin is lowered in this way, the government profits from an increase in seigniorage. [25] This practice would increase the money supply but at the same time the relative value of each coin would be lowered. As the relative value of the coins becomes lower, consumers would need to give more coins in exchange for the same goods and services as before. These goods and services would experience a price increase as the value of each coin is reduced. [26] Again at the end of the third century CE during the reign of Diocletian, the Roman Empire experienced rapid inflation. [19] Ancient China [ edit ] This our weekly discussion of the price level as it relates to Perry Mehrling's money view. The price level is the average price of goods in terms of money or, equivalently, the price of money in terms of goods. But what determines the price level? Why is the price level important? And how does it fit into the money view? Annual escalation clauses in employment contracts can specify retroactive or future percentage increases in worker pay which are not tied to any index. These negotiated increases in pay are colloquially referred to as cost-of-living adjustments ("COLAs") or cost-of-living increases because of their similarity to increases tied to externally determined indexes. Blanchard, Olivier; Amighini, Alessia; Giavazzi, Francesco (2017). "Output, the interest rate and the exchange rate". Macroeconomics: a European perspective (3rded.). Harlow, London, New York, Boston, San Francisco, Toronto, Sydney, Dubai, Singapore, Hong Kong, Tokyo, Seoul, Taipei, New Dehli, Cape Town, Sao Paulo, Mexico City, Madrid, Amsterdam, Muinch, Paris, Milan: Pearson. ISBN 978-1-292-08567-8. Burda, Michael C.; Wyplosz, Charles (1997). Macroeconomics: a European text. Oxford [Oxfordshire]: Oxford University Press. ISBN 0-19-877468-0.

Synonyms

People and firms hold cash (prefer liquidity) for transactionary motives. Cash is needed for day-to-day transactions, as money is the medium of exchange. Seiler, Pascal (September 16, 2020). "Weighting bias and inflation in the time of COVID-19: evidence from Swiss transaction data". Swiss Journal of Economics and Statistics. 156 (1): 13. doi: 10.1186/s41937-020-00057-7. ISSN 2235-6282. PMC 7493696. PMID 32959014. Walrasian GE with transactions costs (Starr “Monetary General Equilibrium with Transactions Costs” 2005) Lagassé, Paul (2000). "Monetarism". The Columbia Encyclopedia (6thed.). New York: Columbia University Press. ISBN 0-7876-5015-3.