Inflation in Modern Economies

Course description

This economics course explains the role that inflation plays in modern economies and describes its impact on the life of an average person. Inflation is the rate at which the average price of goods and services increases over time. It is the regular rise in the general level of prices where a unit of currency buys less than it did in the previous years. This course breaks down such complex ideas to help you understand the global economy.

This course explains the meaning of inflation, how it is measured and how it affects the consumer. We then examine data about inflation going up and down during a course of a year. This will help you understand the exact meanings of deflation and hyperinflation and how they are used to discuss inflation. We also trace the links between inflation and price increases prompted by a fall in the supply of common goods and services.

The course then establishes why good economies tend to be associated with a moderate level of inflation and investigates the strange combination of inflation and stagnation. We show you how stagflation can cause massive inflation in one part of the economy while affecting other parts of the economy differently. Finally, we cover the negative effects of higher inflation and provide a macroeconomic overview.

Many of us have heard our grandparents talk about how a candy bar cost barely anything during their childhood. In the early twentieth century, a Hershey's chocolate bar cost just two cents but that same chocolate bar now costs over a dollar. Inflation explains the change in price and makes a massive difference in the average person's daily life. Sign up for this course to understand the economic forces that drive the world around you.