2013-01-18

Inflation

Taking a break from reading up on the fundamentals of number theory. Reading up on money supply. Terminology learnt: disinflation, the distinction between "monetary inflation," and "price inflation," (both already-known concepts), etc.

I need to study more closely the dynamics of stagflation, and of how moderate inflation helps to cushion the labour market during recessions.

Later in the evening, I read about Tsaing's work and the argument that: expectations of deflation may induce cash hording, and result in prolonged lack of consumption, punctuated by brief spikes in consumption, as consumers try to guess the end of the deflationary period.

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