Unit 3.3(3): Macroeconomic objectives: Inflation and deflation
This page covers the nature of inflation, how inflation is measured, its causes, and its consequences. It also covers deflation. Inflation is the sustained increase in the general level of prices in an economy. For example, if an economy's current rate of inflation is 2.2%, it means that, on average, prices are 2.2% higher now than they were 12 months ago. Disinflation is the fall in the rate of inflation in an...