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The Great Inflation: A Historical Overview and Lessons Learned (Page One Economics)

All inflation isn't bad—a moderate amount can signal a healthy economy. But high inflation, such as that during the Great Inflation, can lead to a vicious cycle where expectations of higher inflation lead to further increases in the price level. Read the October 2012 issue to find out what caused the Great Inflation, how tough (and painful) policy brought it to an end, and two key lessons learned.

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Audience:   High School, College
Language:   English
Subjects:   History, AP Economics, Economics
Resource Types:   Publications, Lessons
Concepts:   Monetary Policy, Federal Reserve System-functions, Unemployment, Inflation/Deflation