Costs of Inflation: Price Confusion and Money Illusion

By Marginal Revolution University on youtube.com

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In this step you'll learn about the history of inflation in the United States. Inflation is the rate at which prices for goods and services increase over a period of time. The inflation rate was 2% to 8% in the 1950s. In the 1960s, the rate increased to 1.3%. In the 1970s, the rate increased to 5.9%, and then 11% in 1974. The rate continued to increase in the 1980s, reaching 14% in 1980, and then 3% in 1983. In 1986, the inflation rate was 77%, and then 7500% in 1992. The rate decreased to 73% in 1992, and then to the current rate of 2.3%. Marginal Revolution is a blog that discusses current economic topics. It is a great resource to learn more about inflation.