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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.
In physical cosmology, cosmic inflation, cosmological inflation, or just inflation, is a theory of exponential expansion of space in the very early universe.Following the inflationary period, the universe continued to expand, but at a slower rate.
Monetary inflation is a sustained increase in the money supply of a country (or currency area). Depending on many factors, especially public expectations, the fundamental state and development of the economy, and the transmission mechanism, it is likely to result in price inflation, which is usually just called "inflation", which is a rise in the general level of prices of goods and services.
In theory, both types of inflation stop when a new equilibrium exists, meaning supply equals demand. ... The post Cost-Push Inflation: Definition and Examples appeared first on SmartAsset Blog.
Cost-push inflation is a purported type of inflation caused by increases in the cost of important goods or services where no suitable alternative is available. As businesses face higher prices for underlying inputs, they are forced to increase prices of their outputs. It is contrasted with the theory of demand-pull inflation.
Vacuum state is a configuration of quantum fields representing a local minimum (but not necessarily a global minimum) of energy. Inflationary models propose that at approximately 10 −36 seconds after the Big Bang, vacuum state of the Universe was different from the one seen at the present time: the inflationary vacuum had a much higher energy density.
The theory is one of the strongest advocates in the debate among mainstream economists for combatting inflation primarily through fiscal policy instead of monetary policy. [2] The theory also disputes the premise of Modern Monetary Theory that inflation can be controlled when it starts to rise.
The theory of inflation was first proposed in 1979, and published in 1981, by Alan Guth. [ 20 ] [ 21 ] His two main motivations for doing so were the flatness problem and the horizon problem , another fine-tuning problem of physical cosmology.