Is Hyperinflation Coming?: What Can Governments Do

The video explains how governments use fiscal and monetary policies to influence inflation. Fiscal policy involves government spending and taxation, aiming for economic growth and public goods provision. Monetary policy, managed by central banks, adjusts interest rates to control inflation. The video also discusses how industrial output, employment, money supply, and the velocity of money impact inflation. It highlights the importance of infrastructure investment and balanced employment levels to prevent inflationary pressures.

What are the two main tools that governments use to control inflation?

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Explain how fiscal policy can impact inflation.

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What is cost-push inflation and why is it considered the worst type of inflation?

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How does employment level affect inflation?

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Describe the relationship between money supply and inflation.

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Discuss the concept of stagflation and its implications for the economy.

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What is the velocity of money and how does it influence inflation?

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