The anatomy of inflation: An economic history perspective

Abstract

Understanding the dynamics of inflation continues to remain at the center of work in macroeconomics. This chapter provides an up-to-date survey of inflation and its principal driving forces. The chapter starts by reviewing stylized fact about inflation and summarizing the behavior of inflation in some commodity money systems. It then summarizes the main theories that are used to explain movements in inflation. We also discuss the role played by inflation volatility and episodes of hyperinflation.