An introduction to business fluctuations

Note: This is post #109 in a weekly video series on basic economics. Rather than moving at a steady pace, economic growth ebbs and flows and has booms and busts. Economists refer to these ups and downs around a country’s long-term GDP growth trend as “business fluctuations.” In this video by Marginal Revolution University, Alex Tabarrok discusses one of the most significant forms of fluctuations: recessions. Continue Reading...

Why governments create inflation

Note: This is post #108 in a weekly video series on basic economics. Most people do not like when prices rise so most people do not like inflation. But there is one sector that sometimes finds inflation beneficial: government. Continue Reading...

Understanding the causes of inflation

Note: This is post #107 in a weekly video series on basic economics. In the last post in this series we learned that according to the quantity theory of money, if the amount of money in an economy doubles the price levels also double, causing inflation. Continue Reading...

Understanding the quantity theory of money

Note: This is post #106 in a weekly video series on basic economics. The quantity theory of money states that there is a direct relationship between the quantity of money in an economy and the level of prices of goods and services sold. Continue Reading...

How do we measure inflation?

Note: This is post #105 in a weekly video series on basic economics. Inflation is an average rise in prices. But how exactly is this average rise in prices measured? In this video by Marginal Revolution University, Alex Tabarrok explains how inflation in the United States can be measured using the Bureau of Labor Statistics’ Consumer Price Index (CPI)—a weighted average of the price increases. Continue Reading...

How hyperinflation can make you a trillionaire

Note: This is post #104 in a weekly video series on basic economics. Imagine having to pay $417.00 per sheet of toilet paper. That actually happened in Zimbabwe. As Alex Tabarrok notes, around 2000, Robert Mugabe, the President of Zimbabwe, was in need of cash to bribe his enemies and reward his allies. Continue Reading...

How taxing work affects employment

Note: This is post #104 in a weekly video series on basic economics. An important factor influencing an individual’s decision whether to keep working as they get older is their government’s tax and retirement policies. Continue Reading...

Liking the article? Sign up for our weekly Newsletter!

Get updates on the latest and most popular blog posts from Acton.