We have already looked at demand-side policies, but governments also have the option to use supply-side policies. These are policies that are designed to increase the productive capacity of a country. As with demand-side policies there are two types: Interventionist policies and Market-based policies. It is important not just to understand the difference between these, …
Although governments have the objective of low inflation, it doesn’t necessarily follow that if inflation is bad then the opposite, deflation, is good. We have already looked at inflation and seen that it is a rise in the average level of prices in an economy over time; but we need to be careful to distinguish …
As well as studying inflation, it is important that we also study the reverse, i.e. deflation. It is important that we know about the causes and consequences of deflation so that we are able to evaluate which is worse inflation or deflation. Although some may think that because inflation is bad it must follow that …
East African trade agreement Article about a move towards a common market in East Africa Deflation returns to Japan Article about a deflation returning to Japan for the first time since the 2006 Factors affecting demand for Second Life Article explaining why the demand for Second Life has fallen – good examples of non-price factors