Chapter 32

Inflation Is a Fundamental Constraint on Economic Policy

English Price Level and Real Wage, 1270-1999 (1270 = 1)

U.S. Prices since the Civil War

Inflation Has Remained Low
and Stable in the 1990s

Money and Hyperinflation in Germany, 1922-1924

Demand-Pull Inflation Occurs When Too Much Spending Chases Too Few Goods

An Upward Spiral of Prices and Wages Occurs When Aggregate Supply
and Demand Shift Up Together

The Short-Run Phillips Curve Depicts
the Trade-off between Inflation
and Unemployment

The Phillips Curve
or the Phillips Curl?

How Shocks Move
the Phillips Curve

Actual Unemployment Rate
and NAIRU, 1955-1999

Actual and Predicted Inflation, 1955-1999