Objective
Students will be able to:
- Define inflation and CPI.
- Explain the causes and costs of inflation.
- Understand the quantity theory of money.
- Apply the MV=PY (aka MV=PQ) identity.
Standards
In this economics video series, students will learn about inflation and CPI.
Description
In 2008, Zimbabwe issued a 100 trillion Zimbabwe dollar note and the inflation rate rose to over 7.68 billion percent per month! This series of seven videos begins with the story of Zimbabwe’s hyperinflation before taking a step back to ask: what is inflation and what are its causes? How is it measured? Does it have any costs? This unit also introduces the quantity theory of money, and with it, one of the most important identities in macroeconomics.