Monetary equilibrium - PowerPoint PPT Presentation

“ The Economic Way of Thinking ” 12 th Edition

“ The Economic Way of Thinking ” 12 th Edition. Chapter 15: Economic Performance and Real-world Politics. Chapter Outline. The Great Depression What Happens in a Recession? A Cluster of Errors Monetary Mismanagement, Monetary Miscalculation Monetary Equilibrium

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© 2007 Thomson South-Western

© 2007 Thomson South-Western. Money Growth and Inflation. The Meaning of Money Money is the set of assets in an economy that people regularly use to buy goods and services from other people. THE CLASSICAL THEORY OF INFLATION. Inflation is an increase in the overall level of prices.

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