By great attention to cleanliness, the plague seems at length to be completely expelled from London. But it is not improbable that among the secondary causes that produce even sickly season and epidemics, ought to be ranked, a crowed population and unwholesome and insufficient food! (Thomas Malthus 1798)
As the nation of Ireland panics and is frighten by epidemic! More uncertainty is here to stay with us all. Vital questions about everyone’s job security. Are starting to be asked by the current government.
In the previous essay. I wrote about Macro — Economics & Gross Domestic Production! In this essay I will struggle to definition inflation. Hopefully, I will also explain in detail the key indicator of unemployment.
Dark Days of The Great Recession
I was only ten years old! When I first heard the word Recession! It was a cold and raining night. I was doing my homework as my parents were watching the 9 o’clock news.
Inflation the most difficult indicator to understand & Explain!!!
The study of inflation is a passion close to my heart as it probably one of the hardest areas of Macro — Economics! Inflation can be narrowly defined as an increase in the money supply! As, when the ECB lowers Interest Rates it makes it easier for people to buy & sell assets.
A classical definition, the rate of change of the general level of money prices. The general level of prices is defined by constructing an index of the prices of different goods weighted by their importance.
What is Price? Let us go back to Malthus Again
Adam Smith has most justly stated, the actual price at which a commodity is sold, is compounded of its natural price, the price at which it can be brought to market, allowing the useful profits of moderate plenty, and the proportion of supply and demand. (Thomas Malthus 1820)
To conclude this essay, I would like to bring inflation down to earth! With a real word example! The price of a can of Red Bull cost me last £2.00, while now that same can cost £2.20.