Notes and Study material for Exams
Unpacking Core Inflation: A Deeper Dive into the Sticky Price Puzzle The term “inflation” is a familiar one, often associated with rising prices and a shrinking purchasing power. But within this broad concept lies a nuanced distinction: core inflation. This metric, often presented alongside headline inflation, provides a more refined picture of price pressures within … Read more
Bottleneck Inflation: A Deep Dive into Supply Chain Constraints and Price Hikes The global economy has been grappling with a surge in inflation since the onset of the COVID-19 pandemic. While various factors contribute to this phenomenon, one particularly impactful driver is bottleneck inflation. This article delves into the intricacies of bottleneck inflation, exploring its … Read more
Galloping Inflation: A Threat to Economic Stability Inflation, the persistent increase in the general price level of goods and services in an economy, is a complex phenomenon with far-reaching consequences. While a moderate level of inflation is generally considered healthy for economic growth, excessive inflation, often referred to as “galloping inflation,” can wreak havoc on … Read more
The Base Effect: How Our Perceptions are Shaped by Starting Points The human mind is a fascinating and complex organ, constantly processing information and making sense of the world around us. One of the ways we do this is through the use of reference points, or bases, which act as anchors for our judgments and … Read more
Stagflation: A Modern Economic Enigma The term “stagflation” might sound like an oxymoron, a contradiction in terms. After all, how can an economy experience both stagnant growth and high inflation simultaneously? Yet, this seemingly paradoxical phenomenon has plagued economies throughout history, leaving policymakers and citizens alike grappling with its complexities. This article delves into the … Read more
Disinflation: A Deeper Dive into the Economic Phenomenon Disinflation, a term often used interchangeably with deflation, is a crucial concept in macroeconomics. While both terms relate to a decrease in the general price level, they differ in their nuances and implications. This article delves into the intricacies of disinflation, exploring its causes, effects, and potential … Read more
The Looming Shadow: Understanding Recessions and Their Impact Recessions, periods of significant economic decline, are a recurring feature of modern capitalism. While they are often associated with negative consequences, understanding their causes, characteristics, and potential solutions is crucial for navigating these turbulent economic waters. This article delves into the intricacies of recessions, exploring their definition, … Read more
Deflation: The Silent Threat to Economic Growth Deflation, the persistent decline in the general price level of goods and services, is often seen as the opposite of inflation. While inflation erodes the purchasing power of money, deflation increases it. However, this seemingly positive effect can have devastating consequences for an economy, leading to a vicious … Read more
Understanding Inflation: A Comprehensive Guide Inflation is a pervasive economic phenomenon that affects everyone, from individuals to businesses and governments. It refers to a sustained increase in the general price level of goods and services in an economy over a period of time. While a small amount of inflation is generally considered healthy for a … Read more
Taming the Inflation Dragon: A Comprehensive Guide to Controlling Inflation Inflation, the persistent rise in the general price level of goods and services, is a formidable economic dragon that can wreak havoc on individuals, businesses, and entire economies. Its fiery breath can erode purchasing power, distort investment decisions, and undermine economic stability. Understanding the causes … Read more