🡸 Chapter 10     Navigate…     Chapter 12 🡺

Chapter 11 – Money Growth and Inflation

This chapter discusses:

  • Inflation, Deflation, and Hyperinflation
  • Quantity Theory of Money, David Hume, Milton Friedman
  • The Classical Theory of Inflation
  • The Levels of Prices and the Value of Money
  • Money Supply, Money Demand, and Monetary Equilibrium
  • The Effects of Monetary Injection
  • Nominal and Real Variables
  • Classical Dichotomy
  • Monetary Neutrality
  • Velocity and Quantity Equation
  • Inflation Tax
  • Fisher Effect
  • The Costs of Inflation
    • Shoeleather Costs
    • Menu Costs
    • Inflation-Induced Tax Distortions
    • Relative-Price Variability and Misallocation of Resources
    • Confusion and Inconvenience
    • Arbitrary Redistributions of Wealth


🡸 Chapter 10      Navigate…     Chapter 12 🡺

Find more Macroeconomics Notes here.


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