哈里 • 约翰逊指出，"我定义通货膨胀作为物价大幅上涨。
作为一种货币现象——As a Monetary Phenomenon:
Economists like Friedman, Coulborn, Hawtrey, Kemmerer, define inflation as a monetary phenomenon.
According to Friedman, "Inflation is always and everywhere a monetary phenomenon."
Coulborn defines inflation as "too much money chasing too few goods."
Hawtrey defines inflation as the "issue of too much currency."
According to Kemmerer, "Inflation is too much money and deposit currency, that is, too much currency in relation to the physical volume of business being done."
Paul Einzig defines inflation "as a state of disequilibrium in which an expansion of purchasing power tends to cause or is the effect of an increase in the price-level."
Prof. E. James defines inflation as a "self-perpetuating and irreversible upward movement of prices caused by an excess of demand over capacity to supply."
Prof. Ackley has defined inflation "as a persistent and appreciate rise in the general level or average of prices."
Monetary inflation "Inflation is always and anywhere a monetary phenomenon in the sense that it can only be produced by a more rapid increase in the quantity of money in output."
Is inflation harmful or desirable?
A mild rate of inflation is beneficial for an economy by 1-2% through which economic growth can be achieved gradually. Every government aims to preserve a mild inflation rate because the benefit of the economy lies on it.
A hyper-inflation rate or galloping inflation is disastrous for a country and can be the cause of breakdown in a nation such as in Zimbabwe where their money has no value on the international ground.
Monetary policy is one of the core policies that appropriately suit to curb inflation. It is the manipulation of the amount of money and credit available, and the cost of that credit to borrowers, that is, interest rate in an attempt to influence total demand in a particular (Lipsey & Harbury 1992). The policy is usually implemented by the central bank on behalf of the government. Hence, it is one of the traditional macroeconomic tools by which the government attempts to achieve its objectives. It should be noted that changes in the rate of interest is now the main government policy measure being used to influence the macro economy on a day to day basis. The rate of interest affects the economy through its influence on aggregate demand. The higher the rate of interest, the lower the level of aggregate demand. Generally, to stimulate aggregate demand during a recession, the appropriate monetary policy would be an expansionary policy. Conversely, to curb spending during a boom, a contractionary monetary policy would be appropriate.
古典方法——The Classical Approach
From the classical economic perspective, the main assumption was that the market economy was believed to automatically operate at full employment. This is because they accept Say's Law (J. B. Say), that is "supply creates its own demand." In simpler terms, there must be the output first in the market to enable consumers to demand for them. Hence, it assumes all output is sold. Due to scarce resources, the amount supply is limited, thus the aggregate supply curve will always be vertical at full employment. This can be illustrated as follows:
From the above diagram, initial aggregate demand and aggregate supply are AD and AS respectively, intersecting at point E. According to this school of thought, money is a veil and is neutral in its economy. Therefore, the real and monetary sectors are separated which is known as classical dichotomy. According to the Quantity Theory of Money, that is Fisher's equation where
The equation simply says that 'the amount spent is equal to the amount received.' Besides the equation hold V and T constant. If the equation goes in line with theses assumption,