ILO:
a) Understanding of:
o inflation
o deflation
o disinflation
b) The process of calculating the rate of inflation in the UK using the Consumer Prices Index (CPI)
c) The limitations of CPI in measuring the rate of inflation
d) The Retails Prices Index (RPI) as an alternative measure of the rate of inflation
e) Causes of inflation:
o demand pull
o cost push
o growth of the money supply
f) The effects of inflation on consumers, firms, the government and workers
a) Understanding of:
o inflation
o deflation
o disinflation
b) The process of calculating the rate of inflation in the UK using the Consumer Prices Index (CPI)
c) The limitations of CPI in measuring the rate of inflation
d) The Retails Prices Index (RPI) as an alternative measure of the rate of inflation
e) Causes of inflation:
o demand pull
o cost push
o growth of the money supply
f) The effects of inflation on consumers, firms, the government and workers
Definitions
What is the difference between inflation, deflation & disinflation?
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What is inflation?
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A Japanese Lesson in Deflation for Europe
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N.B:
You will need to be able to distinguish between inflation, deflation and disinflation when presented with data in written, graphical, tabular and numerical forms.
You will need to be able to distinguish between inflation, deflation and disinflation when presented with data in written, graphical, tabular and numerical forms.
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Apr-15 -0.10% Mar-15 0.00% Feb-15 0.00% Jan-15 0.30% Dec-14 0.50% Nov-14 1.00% Oct-14 1.30% Sep-14 1.20% Aug-14 1.50% Jul-14 1.60% Jun-14 1.90% May-14 1.50% |
Calculating the rate of inflation: Consumer Prices Index ( CPI ) & its limitations
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Explain how you'd measure inflation?
Measuring Inflation
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Watch the revision video on measuring inflation.
Consumer Price Index - A Worked Example
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Retails Prices Index (RPI)
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Why does the CPI & RPI differ?
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Explain the importance of the CPI & RPI?
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RPI vs CPI: how the government is ripping us off
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| cpi_v_rpi.pdf |
Causes of inflation:
Explain the cause of inflation in the videos below. (5 marks)
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History of inflation
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Inflation: could covid-19 cause prices to rise? | The Economist
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Explain how money supply has influenced hyperinflation.
TOP Five Worst cases of Hyperinflation in History | ENDEVR Explains
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Watch the revision presentation on causes of inflation.
Causes of Inflation I A Level and IB Economics
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Effects of inflation on consumers, firms, the government and workers
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Students should be able to explain the effects of inflation on consumers, firms, the government and workers.
These may include effects on: • UK international competitiveness • uncertainty and business planning and investment • the real value of savings • the purchasing power of those on fixed incomes • economic growth and unemployment (the short run Phillips curve). A rapid rate of inflation might cause a wage-price spiral and an increase in menu costs and shoe leather costs. |
Assess the impact of UK inflation on consumers, workers and firms. (12 marks)
Why does inflation matter?
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Assess the impact of Argentina's inflation rate on its macro economic performance? (10 marks)
A life of boom and bust: Can Argentina break the cycle?
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With reference to the short run Phillips curve, assess the trade off between employment and inflation? (10 marks)
Phillips Curve (Revision Update 2018)
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Revision videos
Ensure that you are able to
explain the effects of inflation on consumers, firms, the government and workers.
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Consequences of Inflation
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Benefits and Costs of High Inflation for a Government
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Risks of deflation
Video 1: Assess the economic consequences of deflation for the performance of an economy? (10/12 marks)
Video 2: Assess the effectiveness of monetary policy in solving deflationary pressure? (15 marks)
Video 2: Assess the effectiveness of monetary policy in solving deflationary pressure? (15 marks)
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A Japanese Lesson in Deflation for Europe
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Money Talks: Japan's deflation problem
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Y1 12) Deflation - Causes and Consequences (Deflation can be Deadly!)
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Consequences of Deflation
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Tutor2u
inflation MCQ