Summary: Forecasting models. Economists disagree.
St. Louis Fed Analysis: Inflation May Be the Next Dragon To Slay. One tool economists use is a variation of the Phillips Curve. For an EconEdLink lesson plan on the Phillips Curve, click here.
You might want to consider subscribing to a Fed publication such as the Regional Economist. The Regional Economist takes about 20 minutes to read and is filled is insight that enriches my learning, interpretation, and instruction.
A look at the M2 money supply, will reveal an unprecedented increase in the monetary base. Doesn't it make sense that inflation will follow? The unemployment rate is a lagging indicator. Prices adjust first then wages. Doesn't it make sense that inflation will follow? The Phillips Curve suggests that workers will form inflationary expectations and demand higher wages. Doesn't it make sense that inflation will follow? What indicators do you use to predict inflationary pressure?
About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He is an EconEdLink.org author, and blogs at Mikeroeconomics.
0 comments:
Post a Comment
Have thoughts about this post? Want to share your comments about Teaching AP Economics? This is your chance.