Download A Short History of Socialist Economic Thought by Gerd Hardack, Dieter Karras, Ben Fine PDF

By Gerd Hardack, Dieter Karras, Ben Fine

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The answer is that high and unpredictable inflation can be bad for an economy.  Imagine you’ve locked your money away in a bank for five years at a fixed rate of 3% per year.

What Alfred Marshall will be remembered for more than anything else, however, was his ability to visualise economics in relatively simple – but revolutionary at the time – charts. That economics has become a formal academic and scientific discipline is the result of his work. 48 INFLATION Causes of Inflation: Demand-Pull Versus Cost-Push So, we now know how the general level of prices is determined in an economy. But what causes these ‘equilibrium’ prices to rise? In other words, what causes inflation?

For example, GDP for the first quarter of the year ( January to March) is published towards the end of April for both the UK and the US. European countries usually take a little longer. But they are all eclipsed by Singapore and China, both of which release their numbers within two weeks of quarter-end. For many countries GDP is published so quickly that there is a lot of information missing. When the statistics office computes GDP it relies on company surveys, income and sales tax receipts, details of government spending – all of which take time to be returned.

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