The Causes and Consequences of Inflation and Deflation

Introduction to Price Level Dynamics and Economic Stability; Measuring Price Level Changes: Price Indices (CPI, PPI); Defining and Characterizing Inflation; Defining and Characterizing Deflation; Comparing Inflation and Deflation; Causes of Inflation: Demand-Pull, Cost-Push, and Built-in; Monetary and Fiscal Policy Influences on Inflation; Causes of Deflation: Demand-Side, Supply-Side, and Asset Bubbles; Consequences of Inflation: Purchasing Power, Investment, Wealth Redistribution, Menu & Shoe-Leather Costs; Case Study: Hyperinflation; Consequences of Deflation: Delayed Consumption, Debt Burden, Deflationary Spiral; Monetary Policy Challenges in Combating Deflation; Policy Responses and Debates