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Inflation

Inflation basics

$1 went a lot further in 1900 than today (you could probably buy a good meal for the family for $1 back then). Why? And how do we measure how much more expensive things have gotten (i.e., inflation)?

Inflation scenarios

You know about inflation, but now want to look at how thing might play out in different scenarios. This tutorial focuses on when inflation is "acceptable" and when it isn't (and the causes and repercussions).

Real and nominal return

If the value of money is constantly changing, can we compare investment return in the future or past to that earned in the present? This tutorial focuses on how to do this (another good tutorial to watch is the one on "present value").

Capacity utilization and inflation

This tutorial starts with a very "micro" view of when firms decide to raise (or lower prices). It then jumps back to the macro view to discuss how capacity utilization can impact prices.

Deflation

Prices don't always go up. They often go down. This might seem like a good thing, but it could be disastrous for a modern economy is it goes too far. This tutorial explains what deflation is, how it happens and what the effects of it might be.