What you’ll learn to do: define the rate of inflation; Explain how the rate of inflation is calculated
It is expected that the value of money will evolve over time, and even normal for an economy to experience inflation, but sometimes inflation gets out of control and leads to hyperinflation. Hyperinflation occurred in post-WWI Germany (then the Weimar Republic). Stories have it that the money became so worthless, even thieves would steal a basket but leave the hundreds of bills inside the basket untouched. In this section, you’ll learn about why and how this happens.
The learning activities for this section include:
- Reading: Introduction to Inflation
- Reading: Computing the Rate of Inflation
- Self Check: Rate of Inflation
Take time to review and reflect on each of these activities in order to improve your performance on the assessment for this section.