Inflation and Monetary Policy

Inflation - the basics

• The various different measures
• How is the RPI calculated?
• International and historical comparisons

Inflation - the details

• The costs of inflation

What are the causes of inflation?

• Demand-pull inflation
• Cost-push inflation
• The Quantity Theory of Money

How does a government cure inflation?

• Reducing aggregate demand
• Reducing aggregate supply

UK monetary policy

• UK monetary policy - from 'Thatcher's experiment' to the ERM
• UK monetary policy since the ERM debacle
• What is monetary policy?

The difficulty of the MPC's monthly decision

• The problems faced by the MPC
• What economic data does the MPC have to consider?
• Has the MPC been successful?

Test It

Now you have learnt the main principles, test yourself with these sample questions. If you get stuck, go back and review the principle again.

Coming Soon