MacroeconomicTheoriesofInflation.pdfVIP

2011 International Conference on Economics and Finance Research IPEDR vol.4 (2011) ? (2011) IACSIT Press, Singapore Macroeconomic Theories of Inflation Jalil Totonchi Islamic Azad University, Yazd Branch, Department of Economics, Yazd, Iran (ia.totonchi@) Abstract -- The study of causes of inflation has probably given from one sector of the economy to another, altering relative rise to one of the most significant macroeconomic debates in price and quantity in the process. He provided considerable the field of economics. In practice; however, it is not always refinement, elaboration and extension to the quantity theory easy to decompose the observed inflation into its monetary, of money demand-pull, cost-push and structural components. The David Ricardo (1772-1823), the most influential of the process is dynamic, and the shocks to prices are mixed. classical economists, thought such disequilibrium effects Furthermore, inflation itself may also cause future inflation. ephemeral and unimportant in long-run equilibrium analysis. This paper, mainly attempts to review and analyze the As leader of the Balloonists, Ricardo charged that inflation in competing and complementary theories of inflation. The Britain was solely the result of the Bank of Englands theoretical survey in this research work yielded a six-blocked irresponsible over issue of money, when in 1797, under the schematization of origins of inflation; monetary shocks, Demand side, supply-side (or real) shocks, structural and stress of the Napoleonic Wars; Britain left the gold standard political factors (or the role of institutions). It appeared that for an inconvertible paper standard. Ricardo discouraged inf