《西方经济学》课程教学课件（AⅡ宏观讲稿）Chapter 5 Inflation and the Price Level

Chapter 5 InflationaandtthePPriee Level

Chapter 5 Inflation and the Price Level

▣统计范围 ▣全国居民消费价格指数（CPI)涵盖全国城乡居民生活消 费的食品烟酒、衣着、居住、生活用品及服务、交通和通 信、教育文化和娱乐、医疗保健、其他用品和服务等8大 类、262个基本分类的商品与服务价格。 口调查方法 口采用抽样调查方法抽选确定调查网点，按照“定人、定点、 定时”的原则，直接派人到调查网点采集原始价格。数据 来源于全国31个省（区、市）500个市县、8.3万余家 价格调查点，包括商场（店）、超市、农贸市场、服务网 点和互联网电商等

￾ 统计范围 ￾ 全国居民消费价格指数（ CPI）涵盖全国城乡居民生活消 费的食品烟酒、衣着、居住、生活用品及服务、交通和通 信、教育文化和娱乐、医疗保健、其他用品和服务等 8大 类、 262个基本分类的商品与服务价格。 ￾ 调查方法 ￾ 采用抽样调查方法抽选确定调查网点，按照“定人、定点、 定时”的原则，直接派人到调查网点采集原始价格。数据 来源于全国 31个省（区、市） 500个市县、 8.3万余家 价格调查点，包括商场（店）、超市、农贸市场、服务网 点和互联网电商等

T The Sz47724 consumer price index (CPl) a pa for any period,a measure of the the c cost in that period of a standard cost basket,of goods and services relative to the cost of the same nates basket of goods and services in cal A a fixed year,called the base year three realit basic are ir the b

pick a base year and determine the basket of goods and services that were con- 场u心1lSq med by the typical family during that yearn practicelthe government learns how nsumers allocate their spending through a detailed survey,called the Consumer penditure Survey,in which randomly selected families record every purchase they ke and the price they paid over a given month.Let's call the basket of goods and ices that results the base-year basket.Then,each month BLS employees visit usands of stores and conduct numerous interviews to determine the current es of the goods and services in the base-year basket.1 The CPI in any given year is computed using this formula: CPI Cost of base-year basket of goods and services in current year Cost of base-year basket of goods and services in base year arning to the example of the typical family that consumes three goods,we car ulate the CPI in the year 2015 as numerato $850 CPI in year 2015 =1.25. $680 demende ther words,in this example,the cost of living in the year 2015 is 25 percer er than it was in 2010,the base year.Notice that the base-year CPI is alwa arthe numerator and the denominator of the C

THE CONSUMER PRICE I TABLE 5.2 Cost of Reproducing the 2010(Base-Year)Basket of Goods and Services in Year 2015 Item Cost (in 2015) Cost (in 2010) Rent,two-bedroom apartment $630 $500 Hamburgers (60 at $2.50 each) 150 120 Movie tickets(10 at $7.00 each) 70 60 Total expenditure $850 $680

What are the main causes of inflation? WAGI☒ INCREASE Credit boom Higher wage costs Energy Price Increased energy bills Falling exchange rate

What are the main causes of inflation?

Inflationccanaariser frominternal and external events Some inflationary pressures come from the domestic economy,for example the decisions of utility businesses providing electricity or gas or water on their tariffs/pricelists for the year ahead,or the pricing strategies of the food retailers based on the strength of demand and competitive pressure in their markets. A rise in the rate of VAT would also be a cause of increased domestic inflation in the short term because it increases a firm's production costs

￾ Some inflationary pressures come from the domestic economy, for example the decisions of utility businesses providing electricity or gas or water on their tariffs/pricelists for the year ahead, or the pricing strategies of the food retailers based on the strength of demand and competitive pressure in their markets. ￾ A rise in the rate of VAT would also be a cause of increased domestic inflation in the short term because it increases a firm's production costs. Inflation can arise from internal and external events

Inflation can also come from external sources,for example a sustained rise in the price of crude oil or other imported commodities,foodstuffs and beverages. Fluctuations in the exchange rate can also affect inflation for example a fall in the value of the RMB against other currencies might cause higher import prices for items such as automobiles from Germany or technology supplies from the United States which feeds through directly or indirectly into the consumer price index

￾ Inflation can also come from external sources, for example a sustained rise in the price of crude oil or other imported commodities, foodstuffs and beverages. ￾ Fluctuations in the exchange rate can also affect inflation – for example a fall in the value of the RMB against other currencies might cause higher import prices for items such as automobiles from Germany or technology supplies from the United States – which feeds through directly or indirectly into the consumer price index

Main Causes ofiinflation 1.Inflation related to money supply If the Central Bank prints more money,you would expect to see a rise in inflation.This is because the money supply plays an important role in determining prices.If there is more money chasing the same amount of goods,then prices will rise. Hyperinflation is usually caused by an extreme increase in the money supply

￾ 1.Inflation related to money supply ￾ If the Central Bank prints more money, you would expect to see a rise in inflation. This is because the money supply plays an important role in determining prices. If there is more money chasing the same amount of goods, then prices will rise. Hyperinflation is usually caused by an extreme increase in the money supply. Main Causes of inflation

When would an increase in the money supply not result in an increase in inflation? The basic answer is that it depends on factors such as the velocity of circulation (number of times money changes hands),the state of the economy and the growth in productive capacity (the Long Run Aggregate Supply LRAS)

When would an increase in the money supply not result in an increase in inflation? ￾ The basic answer is that it depends on factors such as the velocity of circulation (number of times money changes hands), the state of the economy and the growth in productive capacity (the Long Run Aggregate Supply LRAS)