a picture of a clip board with a graph on it

Video Lecture Script: Understanding InflationIntroductionWelcome to this lecture on inflation. Today, we’ll discuss what inflation is, how it impacts the economy, and examine recent inflation trends globally and within specific economies like the U.S. and Eurozone.What is Inflation?Inflation refers to the rate at which the general price level of goods and services rises over time, reducing the purchasing power of money. It is typically measured by indices like the Consumer Price Index (CPI). Moderate inflation is considered a sign of a growing economy, but excessive inflation or deflation can signal economic issues.Types of Inflation 1. Demand-Pull Inflation: Occurs when demand exceeds supply. 2. Cost-Push Inflation: Triggered by rising production costs. 3. Built-In Inflation: When higher wages increase production costs, leading to higher prices.Why Does Inflation Matter? • Consumers: Rising prices can erode savings and reduce purchasing power. • Businesses: Inflation affects input costs and pricing strategie