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Economic Theory of Inflation

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  • Jackson, Emerson Abraham

Abstract

This paper explores the Economic Theory of Inflation, meticulously progressing from fundamental concepts to intricate mathematical models. Investigating causes and consequences, the study draws on pertinent economic theories and empirical evidence. Key findings elucidate the multifaceted nature of inflation, considering Demand-Pull, Cost-Push, and Phillips Curve theories. Mathematical models, including the Fisher Equation and Adaptive Expectations Model, offer quantitative insights into inflation dynamics and expectations. The paper culminates by addressing the imperative of effective economic management, advocating a judicious mix of monetary and fiscal strategies for achieving price stability and sustainable economic growth. The synthesis of economic theory, empirical analysis, and policy considerations contributes to an informed and nuanced understanding of the Economic Theory of Inflation, crucial for policymakers navigating the complexities of contemporary economies.

Suggested Citation

  • Jackson, Emerson Abraham, 2024. "Economic Theory of Inflation," EconStor Preprints 280999, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:280999
    as

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    File URL: https://www.econstor.eu/bitstream/10419/280999/1/Economic-Theory-of-Inflation.pdf
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    References listed on IDEAS

    as
    1. Robert J. Gordon, 1985. "Understanding Inflation in the 1980s," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 16(1), pages 263-302.
    2. Jackson, Emerson Abraham, 2016. "Phronesis and Resource Curse Hypothesis in Post-Independent Sierra Leone," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 3, pages 1-11.
    3. Jabbie, Mohamed & Jackson, Emerson Abraham, 2020. "On the Validity of Purchasing Power Parity (PPP): The Case of Sierra Leone," MPRA Paper 110659, University Library of Munich, Germany, revised 05 Jun 2020.
    4. Jackson, Emerson Abraham & Kamara, Purity & Kamara, Abdulsalam, 2022. "Determinants of Inflation in Sierra Leone," MPRA Paper 117278, University Library of Munich, Germany, revised Apr 2023.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Inflation; Economic Theory; Inflation Control;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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