ECN 204 Study Guide - Midterm Guide: List Of The Sopranos Characters In The Soprano Crime Family, Panel Data, Marginal Utility
16 Apr 2011
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Inflation j price change from one period to another. Took 5 years to get rid of inflation in japan. Inflation is just like alcoholism, in both cases, when you start drinking or when you start printing too much money. The good effects come first; the bad effects only come later. That"s why, in both cases, there is a strong temptation to overdo it, to drink too much and to print too much money. When it comes to the cure, it"s the other way around, when you stop drinking or when you stop printing money the bad effects come first and the good effects only come later. That"s why it"s so hard to persist with the cure. Begin at point a j produce @ 2% inflation. Short run j price not easily adjustable (change) Point f j worst situation, low gdp level, high inflation.
