Discussion: Inflation/Transitory Inflation
post should be between 300 to 500 words. Provide a list of any references (2-3 are fine) and use APA style.
Include at least one reference using the textbook:
https://unitimesofficial.files.wordpress.com/2020/06/the-economics-of-money-banking-and-financial-markets-11th-edition-global-edition.pdf
As finance and economics students, you have heard in the news that inflation is on the rise. Take a look at the news article that is attached. The disagreement has to do with whether the inflation is permanent or short-term (transitory). In crafting your answers, consider the following crucial theoretical issues (the lack of theory is confusing a lot of journalists and analysts on this topic).
What is inflation? How is it measured? CPI? Core inflation? How is inflation different from the price level. What is hyperinflation? Is the United States going to experience hyperinflation?
Present these two charts from FRED showing the price level versus the rate of inflation. How does the US inflation differ from this one in Venezuela
Venezuela: https://fred.stlouisfed.org/series/FPCPITOTLZGVEN
US: https://fred.stlouisfed.org/series/FPCPITOTLZGUSA
~No need for a reference for the FRED charts.
~Reference for Journal Article attached: The Economist Newspaper. (2021, October 8). Will surprisingly high global inflation last? The Economist. Retrieved July 8, 2022, from https://www.economist.com/briefing/2021/07/10/surprising-levels-of-inflation-are-increasingly-being-driven-by-wages-not-goods
~Reference for Textbook:
Mishkin, F. S. (2015). The economics of money, banking, and Financial Markets (11th ed.). Pearson.
