Chapter 9 Ensuring Price Stability 英文版的宏观经济学 萨缪尔森版 教学课件文档.pptVIP

1 Definition and Three Strains of Inflation 2 The Economic Impacts of Inflation 3 The source of Inflation 4 The Philips Curve * Inflation Is a Fundamental Constraint on Economic Policy * 1 Definition and Three Strains of Inflation 1 1 Definition The rate of inflation is the percentage change in a price index from one period to the next. The major price indexes are the consumer price index (CPI) and the GDP deflator. Inflation (t) = [P(t) - P(t - 1)]/P(t - 1) × 100 Inflation is an increase in the overall level of prices. * 1.2 Three Strains of Inflation ※ low inflation (Single-Digit) ※ Galloping Inflation ※ Hyperinflation * 2 The Economic Impacts of Inflation 2.1 Impacts on Incomes and Wealth Distribution ※Benefit Debtors and Hurt Creditors ※ Benefit Those Who Have Variable Income and Hurt Those Who Have Fixed Income. ※ Benefit Governments and Hurt Tax Payers inflation tax ※ Benefit Employers and Hurt Employees * 2.2 Impacts on Economic Efficiency ※ Distort Price and Price Signals ◎Inflation distorts relative prices. ◎Consumer decisions are distorted, and markets are less able to allocate resources to their best use. * ※ Distort the Use of Money and Increase Shoeleather Costs ◎Shoeleather costs are the resources wasted when inflation encourages people to reduce their money holdings. ◎Inflation reduces the real value of money, so people have an incentive to minimize their cash holdings. ◎ Less cash requires more frequent trips to the bank to withdraw money from interest-bearing accounts. ◎ Cash-management schemes become more important. Extra trips to the bank take time away from productive activities. * ※ Distort Taxes ◎Inflation exaggerates the size of capital gains and increases the tax burden on this type of income. ◎With progressive taxation, capital gains are taxed more heavily. ◎ With inflation, standard deduction would decline.