a b c d Ginsburg, David (2006). Gold Coins of the New Orleans Mint: How Gold Coins Circulated in 19th Century America. Zyrus Press. pp.25–33. ISBN 9780974237169. Seiler, Pascal (September 16, 2020). "Weighting bias and inflation in the time of COVID-19: evidence from Swiss transaction data". Swiss Journal of Economics and Statistics. 156 (1): 13. doi: 10.1186/s41937-020-00057-7. ISSN 2235-6282. PMC 7493696. PMID 32959014. a b c d e f g h i Parkin, Michael (2008). "Inflation". The New Palgrave Dictionary of Economics: 1–14. doi: 10.1057/978-1-349-95121-5_888-2. ISBN 978-1-349-95121-5. Inflation expectations or expected inflation is the rate of inflation that is anticipated for some time in the foreseeable future. There are two major approaches to modeling the formation of inflation expectations. Adaptive expectations models them as a weighted average of what was expected one period earlier and the actual rate of inflation that most recently occurred. Rational expectations models them as unbiased, in the sense that the expected inflation rate is not systematically above or systematically below the inflation rate that actually occurs.

During the 19th century, three different schools debated these questions: The British Currency School upheld a quantity theory view, believing that the Bank of England's issues of bank notes should vary one-for-one with the bank's gold reserves. In contrast to this, the British Banking School followed the real bills doctrine, recommending that the bank's operations should be governed by the needs of trade: Banks should be able to issue currency against bills of trading, i.e. "real bills" that they buy from merchants. A third group, the Free Banking School, held that competitive private banks would not overissue, even though a monopolist central bank could be believed to do it. [56] Cooley, Thomas F.; Hansen, Gary D. (1989). "The Inflation Tax in a Real Business Cycle Model". The American Economic Review. 79 (4): 733–748. ISSN 0002-8282. JSTOR 1827929. Table 1 provides a simple example of how to calculate a deflator. The following terms are used in the table: Other economic concepts related to inflation include: deflation–a fall in the general price level; disinflation–a decrease in the rate of inflation; hyperinflation–an out-of-control inflationary spiral; stagflation–a combination of inflation, slow economic growth and high unemployment; reflation–an attempt to raise the general level of prices to counteract deflationary pressures; and asset price inflation–a general rise in the prices of financial assets without a corresponding increase in the prices of goods or services; agflation–an advanced increase in the price for food and industrial agricultural crops when compared with the general rise in prices.

Consequences of Deflation

International Monetary Fund, Deflation: Determinants, Risks, and Policy Options - Findings of an Independent Task Force, Washington D. C., April 30, 2003. Median Price Changes: An Alternative Approach to Measuring Current Monetary Inflation" (PDF). Archived from the original (PDF) on May 15, 2011 . Retrieved May 21, 2011. Productivity and deflation are discussed in a 1940 study by the Brookings Institution that gives productivity by major US industries from 1919 to 1939, along with real and nominal wages. Persistent deflation was clearly understood as being the result of the enormous gains in productivity of the period. [19] By the late 1920s, most goods were over supplied, which contributed to high unemployment during the Great Depression. [20] Bank credit deflation [ edit ] Green, Roy (2018). "Real Bills Doctrine". The New Palgrave Dictionary of Economics: 11328–11330. doi: 10.1057/978-1-349-95189-5_1614. ISBN 978-1-349-95188-8.

Although the values of capital assets are often casually said to deflate when they decline, this usage is not consistent with the usual definition of deflation; a more accurate description for a decrease in the value of a capital asset is economic depreciation. Another term, the accounting conventions of depreciation are standards to determine a decrease in values of capital assets when market values are not readily available or practical.The Fed – What is inflation and how does the Federal Reserve evaluate changes in the rate of inflation?". Board of Governors of the Federal Reserve System. September 9, 2016. Archived from the original on July 17, 2021 . Retrieved November 3, 2021. Bordo, Michael D.; Filardo, Andrew J. (2005-11-01). "Deflation in a Historical Perspective". Rochester, NY. doi: 10.2139/ssrn.860404. S2CID 153344185. SSRN 860404. {{ cite journal}}: Cite journal requires |journal= ( help) Abe unveils 'massive' coronavirus stimulus worth 20% of GDP". The Japan Times. 2020-04-06 . Retrieved 2021-02-04. One important economic measure of the UK economy is gross domestic product (GDP), as shown in our GDP Quality and Methodology Information report. GDP is a measure of economic output carried out by all firms, non-profit organisations, government, and households. There are three approaches, or methods, of calculating GDP, as set out in our Guide to UK National Accounts article: